What companies made it to the Top 5 biggest bankruptcies in America? With a variety of causes, bankruptcies became possible. Even though some companies bounced back, some of them apparently did not.
America’s Biggest Bankruptcy #5 – CIT Group
According to Wall Street Journal, CIT Group takes the 5th spot. After months of dealing with creditors, CIT ended up filing for Chapter 11 protection in 2009. Bondholders accepted CIT’s reorganization plan but rejected their debt swap proposals. With a value of $80.4 billion, bankruptcy became inevitable.
America’s Biggest Bankruptcy #4 – General Motors
General Motors takes the 4th spot. This 101-year old company filed for Chapter 11 protection in 2009 after realizing its large scale financial problems with a value at bankruptcy of $91 billion.
America’s Biggest Bankruptcy #3 – WorldCom
WorldCom, on the other hand, filed for Chapter 11 in 2002 with a value at bankruptcy of $103.9 billion, making it to the 3rd spot. Because of a massive book-keeping fraud, WorldCom quickly ran out of money since customers started to withhold payments and suppliers began to demand their cash. With its new chief executive, John Sidgmore, they hope for WorldCom’s survival.
America’s Biggest Bankruptcy #2 – Washington Mutual
Washington Mutual, abbreviated as WaMu, takes the 2nd spot. Because of the Lehman Brothers bankruptcy in 2008, WaMu’s funds became insufficient since depositors panicked and withdrew about $16.7 billion from their accounts. WaMu’s value at bankruptcy is $327.9 billion.
America’s Biggest Bankruptcy #1 – Lehman Brothers
Being the leading investment bank in America, Lehman Brothers bankruptcy is the 1st placer in the Top 5 biggest bankruptcies list. Losing its market confidence and non-bailing out of the government led to the Lehman Brothers’ fall in 2008. Their value at bankruptcy is about $691 billion.
With histories made from the Top 5 biggest bankruptcies, both customers and companies should then learn from these experiences. Because filing for a Chapter 11 protection may not always solve the problem especially when very large amounts of money are leaving big holes in their accounts and the pockets of their shareholders.