What goes up sometimes come down, and if the “falling element” is gigantic, the sound of its fall is more louder and more percipient. This list of TopYaps exemplifies that if the financial circumstances catch a company off guard, it will be definitely susceptible to bankruptcy.
10. Pacific Gas and Electric:
Pacific Gas and Electric is well known for providing electricity and natural gas to a significant portion of California. Due to the lack of standard productivity and ineffective in selling electricity to consumers, this company filed for bankruptcy on April 6, 2001. In April 2004, this company came back to business after distributing over $10.2 billion to hundreds of creditors.
9. Thornburg Mortgage:
Founded in 1993, Thornburg Mortgage Inc. was a real estate investment trust, headquartered in Santa Fe, New Mexico. This firm witnessed enormous financial hurdles during the Financial Crisis of 2007-2010 and finally on April 1, 2009, it filed for bankruptcy.
Founded in 1925 by Walter Chrysler, Chrysler Group LLC is an eminent multinational automaker, based in Auburn Hills, Michigan. On April 30, 2009, this company filed for bankruptcy at the Court of the Southern District of New York. This company emerged form havoc on June 10, 2009, when Italian automaker “Fiat” arrived in game and acquired 53.5% of its stake.
Notable for making instant film cameras, Polaroid is a leading American-based eyewear and consumer electronics company. Because of the failure of its senior management, this company filed for bankruptcy on October 11, 2001. Most of its business was sold to a private equity firm which is now known as Polaroid Holding Company (PHC). With nominal share, original Polaroid Company changed its name to Primary PDC, Inc.
6. CIT Group:
Headquartered in New York City, CIT Group is known for leasing capital and providing financial assist for small business ventures and other clients across the world. Because of tremendous decline in company’s housing and mortgage markets, CIT Group filed for bankruptcy on November 1, 2009. This shock wave for consumers ended on December 10, 2009, when this company emerged from mayhem after paying all of its debts.
Symbolization of unsoundest corporate fraud, Enron was, once, a top-notch global company in production of natural gas, electricity, paper and communications. Because of management’s poor financial reporting, accounting loopholes and accounting purpose entities, Enron filed for bankruptcy on September 2, 2001. Till the date, it is considered as one of the most complex cases in the history of United States.
4. General Motors:
General Motors Company is headquartered in Detroit, Michigan and operates its business in some 157 countries with approximately 209,000 employees. This company experienced a drastic drop in car sales and eventually on June 8, 2009, it filed for bankruptcy. However, after receiving financial aid of billions of dollars from the U.S. Government, this company was back to business on July 10, 2009.
Better known for dominating the telecommunication sector of the United States, WorldCom went bankrupt on July 21, 2002, after experiencing an accounting fraud of over $3.8 billion. Later, WorldCom and MCI Communications were merged to form MCI, Inc., the telephony backbone of America.
2. Washington Mutual:
WaMu was the second largest savings and loan association of America which was officially declared bankrupt on September 26, 2008. This company was seized by the Office of Thrift Supervision (OTS) of United States on September 25, 2008, because of an enormous withdrawal of $16.4 billion deposit, in just 10 days of bank run. Bankruptcy of this company led the biggest bank failure in the financial history of United States.
1. Lehman Brothers:
With a gigantic value of over $600 billion, Lehman Brothers, a global financial services firm, filed its bankruptcy on September 15, 2008, marking the largest bankruptcy filing in the history of United States. Collapse of this fourth largest investment bank of United States unfolded the late-2000s global financial crisis.