Despite its June 1st Chapter 11 bankruptcy filing, many investors are still trading General Motors stock. As one would imagine, the Detroit automaker’s stock is essentially worthless at this point, leading GM to chime in on the subject.
GM warned investors to steer clear of its stock last month but has now issued a second statement covering the same subject. “GM management has noticed a recent elevation in the volume and price of its common stock. While GM does not control the market or its stock price, GM management strongly believes that any recovery for the common stockholders in the Chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios,†GM said in a statement.
“Stockholders of a company in Chapter 11 generally receive value only if all claims of the secured and unsecured creditors are fully satisfied.”
Despite being traded over the counter, GM’s stock had an average daily volume of 85.1 million shares in June, according to Automotive News. GM’s stock hit $1.16 in recent weeks, but sank to 91 cents per share shortly after GM released its statement.
