Friday, May 29, 2009

Shares of General Motors Corp. have fallen below $1 for the first time in 76 years as a Chapter 11 bankruptcy filing for the automaker appears increasingly likely.

GM shares lost more than 22% to fall as low as 87 cents in morning trading on Friday. It was the stock's lowest trade since April 18, 1933.

The symbolic decline comes just days away from a government-imposed restructuring deadline of June 1. The company is expected to file for Chapter 11 bankruptcy protection by then, leaving shareholders virtually wiped out.

On Thursday, the automaker offered a new debt-for-equity proposal to its bondholders. The deal would give the government a 72.5% stake in the company but made no mention of existing shareholders.