Finance and Investment Law

Analysis of the Bankruptcy of GM

Analyze the debt and equity composition and various leverage ratios of GM for the period of 2002-2008.

Review and summarize the litigation involving GM prior to bankruptcy make sure you discuss how each arose. What happened to these cases?

On the date of the bankruptcy did the company stock still trade? If so, why would investors be interested?

Did the company proceed through chapter 11 to Chapter 7- why or why not? Part of your discussion should involve the restructuring versus liquidation of assets.

Note the Companys dividend policy and dividend yield prior to the bankruptcy. In your opinion should this have been allowed how were the dividend payments funded?

Describe the investment of the US government. Was it paid back by the new GM and from what source of funds.

Note the failures in the attempted restructuring in the year prior to bankruptcy (sale of business units).

Which investing entity controlled GM during the period it was a private company and describe the structure of GM during that period.

Were any of the Officers or Directors sued for mismanagement of the Company why or why not?