10. Pacific Gas and Electric Co.
Pacific Gas and Electric Co. was actually victim of regulation change of energy markets made by California government. The company already struggled with the high costs of producing the energy, so this hit was too much. They filed for bankruptcy protection due to debt of $36 billion, but after a period managed to emerge from it. Now they provide natural gas and electricity to 15 million customers.
9. Thornburg Mortgage
Thornburg Mortgage, you guess, collapsed in the mortgage crisis in 2009. The company fought to avoid liquidation as ceased accepting loan applications. However, it wasn’t enough and, despite the prospects of finding exit from the crisis, they announced a file for bankruptcy protection in April 2009 due to the $36.5 billion debt.
8. Chrysler
Obviously the car industry was strongly hit by the world’s business flows in recent years. Chrysler had narrowly avoided bankruptcy in 1979, but this time they couldn’t do anything to repeat that. The debt of $39 billion sent them close to liquidation, but after the file for bankruptcy protection they allied with Italian car manufacturers Fiat and the company was somehow saved. But the debt of $39 billion was too much for them at that period and could also be put to 1st place.
7. Conseco
Conseco still exists, but it is not the company that once was. The company bankrupted in December 2002 due to the debt of $61 billion. They first had a debt of “only” $8 billion which was reduced to $1.4 billion, but the management somehow rose it up to amazing $61 billion. Now they sell insurance to 4 million people.
6. Enron
Enron is, without any doubt, the world’s most famous bankruptcy case, or at least it was before the world’s crisis. Unlike the previous examples which were result of a crisis, Enron’s bankruptcy was result of fraud. It caused the government to establish new practices and standards with the Sarbanes-Oxley Act of 2002. Enron owed $65.5 billion, but more important about the case was the conviction for accounting fraud for the management of the company.
5. CIT
When Lehman Brothers was liquidated CIT was still a healthy company. They just had to wait for the government cash to come and save their position. Nevertheless, that money never came and they had to take loans from other sources. The debt rose up to $71 billion and in November 2009 the end had come. CIT management was unable to find money to proceed with regular work.
4. General Motors
Even the world’s largest automotive company couldn’t stand the financial crisis and filed for bankruptcy protection in June 2009. The manufacturer of Chevy, Buick, Cadillac, Opel, GMC and other car models was world’s largest industrial company, but the debt of $91 billion was too much for them.
3. WorldCom
WorldCom was second largest long-distance telecom until 2002 when it filed for bankruptcy. It was result of CEO Bernie Ebbers’ accounting fraud, which brought the company into debt of huge $104 billion. Of course, now he is in prison, serving the 25 years long sentence, because of securities fraud, conspiracy, and filing false documents.
2. Washington Mutual
Washington Mutual still exists, but it’s not what once was. In the above mentioned crisis American citizens withdrew $16 billion in a period of only ten days, so the management of the once US biggest savings and loans bank could do nothing but to file for bankruptcy protection. It was filed only eleven days after Lehman Brothers, when the debt rose up to fantastic $328 billion.
1. Lehman Brothers
