Thursday, May 21, 2009
GM shares sink to new low
Shares in struggling vehicle manufacturer General Motors sunk to their lowest level in more than 70 years amid increasingly loud signals that the company is heading for bankruptcy protection within the next three weeks.
Shares fell by 20 per cent after senior GM executives sold stock worth $315,000 to leave shares trading at $1.15.
The White House has given GM until June 1 to restructure and win more financial aid. If the company fails to cut its debts and costs by the deadline, it will be forced to file for Chapter 11 bankruptcy.
GM's shareholders are in a lose-lose situation, according to analysts, because their investments would be all but wiped out regardless of whether the company goes bust.
DATED: 21.05.9
FEED: AW
