I read an article just now relating to General Motors and the possibility that the company be entered into a bankruptcy process if the government opts on that route instead of supporting its continued existence.
The specific article can be found
HERE and the portion I'm curious about is quoted as such:
Quote:
GM, which has lost more than $82 billion since 2005, has received $13.4 billion in federal loans and is seeking more than $16 billion in additional government aid.
The White-House appointed task force has given GM 60 days to come up with a restructuring plan that cuts costs and debt levels more deeply than the automaker had planned.
By that point, officials have promised a decision on whether to support GM's turnaround as a much smaller auto company or whether to put it through a bankruptcy process intended to shed debt and laggard assets.
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If General Motors would be entered in to the above stated "bankruptcy process" would all shareholder stock effectively become worthless, or is there an alternative that could result in a bankruptcy process being entered without shares of the stock becoming worthless, literally?