GM cautions investors on stock
The Detroit News
General Motors Corp., which is reorganizing under bankruptcy protection, issued a cautionary statement Wednesday about its shares.
"GM management has noticed the continuing high trading volume in GM's common stock at prices in excess of $1," the automaker said in a statement. "GM management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."
GM said stockholders of a company in a Chapter 11 bankruptcy "generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In this case, GM management strongly believes all such claims will not be fully satisfied, leading to its conclusion that GM common stock will have no value."
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