Famous Corporate Bankruptcies Part 4
The Tribune Group
In2008, The Tribune Group, a newspaper and television chain that publishes The Chicago Tribune, and The Los Angeles Times filed for Chapter 11 bankruptcy protection. A drop in advertising revenue brought on by the recession, as well as a shift with internet advertising, were noted as the Tribune Group’s main financial problems.
On September 26, 2008, Washington Mutual, Inc. and its remaining subsidiary, WMI Investment Corp., filed for Chapter 11 bankruptcy. Washington Mutual, Inc. was delisted from trading on the New York Stock Exchange, and commenced trading via pink sheets. At the time, their bankruptcy was the second largest in terms of assets, in U.S. history, with the largest being Lehman Brothers, which filed bankruptcy just 11 days prior to Washington Mutual. In the end, J.P. Morgan Chase purchased the failed bank for $1.9 billion in a deal brokered by federal regulators.
General Growth Properties
Unable to reach a deal with their creditors, General Growth Properties (GGP) filed for Chapter 11 bankruptcy on April 16, 2009. GGP’s bankruptcy case was the largest real estate bankruptcy since at least 1980, and the largest filing by a mall operator. In November of this year, GGP exited bankruptcy, and in 2012 the mall operator has plans to spin off 30 of its mall properties into a new division, Rouse Properties, Inc.
On April 30th, 2009, Chrysler became the first of Detroit’s Big Three automakers to file for bankruptcy protection. The filing was in response to a dramatic slump in sales. Chrysler received some $7 billion in tax payer bailout money, $4 billion of which was given to the company during the Bush Administration. The Obama Administration, moved the automaker into bankruptcy protection so the company could achieve an alliance with the Italian automaker, Fiat. Chrysler’s bankruptcy case caused a large public outcry, especially over the automaker’s new ownership structure, and the fact that their bailout money will not be repaid.
Just one month after Chrysler filed for bankruptcy, General Motors (GM) followed. GM’s bankruptcy filing earned them the “distinction” of the fourth largest bankruptcy case in U.S. history. $19.4 billion in federal help wasn’t enough to keep the troubled automaker out of bankruptcy court. The government pledged another $30 billion to help the automaker during its bankruptcy reorganization. The new General Motors is named General Motors Company LLC, which is separate and independent from the old corporation. The new company retains four of its major brands: Chevrolet, GMC, Cadillac, and Buick. The company is planning to keep 3,600 out of 6,000 of its U.S. dealerships.
Los Angeles Corporate Bankruptcy Lawyer
Let the experienced corporate bankruptcy attorneys at McFarlin Law, in Los Angeles help get your company back on track. Corporate bankruptcy can be a tool to reorganize your corporations debts, and improve the future of your company in every way. At McFarlin Law, we offer free corporate bankruptcy consultations to prospective clients. Please call us today at (888) 728 0044, or email us here. We look forward to working with you.
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