What would happen to GM stocks if GM declared bankruptcy?

[raccoon]

Just curious, I don't own any.

[Idealism]

1. $0.00

How many would you like?

[DJ13]

2. The stock becomes worthless

[DainBramaged]

3. As do millions of jobs

[AngryAmish]

7. not necessarily so

But the car business is different.

[monmouth]

4. Would MSNBC be shut down????...n/t

[AngryAmish]

5. Might go up, might go down.

Why up? Under a Chapter 11 reorganization, the company can repudiate old contracts. So the bankruptcy judge can cut loose the pension plan, cut retiree medical and cut wages and benefits of workers. No strike is allowed - the UAW leaders could be jailed for contempt of court.

Why down? If they do a Chapter 7 liquidation, they would sell all the assets. They owe more than the assets so there would be no money to disburse to the shareholders.

[Gothmog]

6. Absolute priority rule

If any creditor has their rights impaired without their consent, then all junior creditors or interest holders are wiped out. The whole point of any such bankruptcy would be to wipe out the rights of the unions and retirees and to reduce the amount owed to bondholders which means that the shareholders should get zip.