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Despite the fact that General Motors is now undergoing a well-publicized (as in the President of the United States of America has discussed it at length) bankruptcy, perpetually optimistic investors are still trading its (literally completely worthless) stock. For the second time in a month, the General is telling investors to knock it off.
“GM management has noticed a recent elevation in the volume and price of its common stock,” the automaker said in a brief statement. “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.
“Stockholders of a company in Chapter 11 generally receive value only if all claims of the secured and unsecured creditors are fully satisfied,” the statement said.
GM’s biggest obstacle in emerging from the bankruptcy process is fighting off the objections of its secured and unsecured creditors, who are likely to be jilted as the automaker sells off its most valuable assets to an entity majority owned by the U.S. government – leaving its “bad” assets to be fought over by the creditors.
This is second time (yes, seriously) GM has issued a warning to investors; the first time was June 10, nine days after its official June 1 bankruptcy filing.
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