Tuesday, May 12, 2009
Shares of General Motors have tumbled to the lowest since 1933 today. Investors feared dilution of their stock or bankruptcy as the company approaches the June 1 restructuring deadline.
GM shares dropped to as low as $1.09, the lowest level since April 28, 1933.
GM has received $15.4 billion in federal loans and is a little more than two weeks away from a government-imposed deadline to finish a restructuring plan or be sent into Chapter 11 bankruptcy protection.
The company has said it would prefer to restructure out of court, but Chief Executive Fritz Henderson says that bankruptcy is more probable with so much to accomplish and the deadline closing in.