Top Ten Bankruptcy Cases

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6. Enron

Enron was originally involved in transmitting and distributing electricity and natural gas throughout the United States. Enron Corp. filed for bankruptcy pursuant to Chapter 11 on December 2, 2001, with previously recorded assets of $63.4 billion. The Enron collapse caused significant losses to pension funds and shareholders. Because of Enron, accounting practices across the United States were called into question, and penalties and regulations were tightened for both banks and corporate legal businesses. Multiple international banks were sued for claims by creditors for allowing accounting fraud and all most were eventually settled.

 

7. Conseco

Conseco based in the Indianapolis suburb of Carmel, the nation’s 26th-largest life insurance company and finance giant filed for Chapter 11 bankruptcy protection on December 17, 2002. The company collapsed under a huge debt load resulting from a rash of acquisitions. The filing by the company, with $52 billion in assets, led to the sale of its finance business.

 

8. Chrysler

Chrysler Group LLC, a U.S. based automobile manufacturer headquartered in the Detroit, Michigan filed a Chapter 11 petition  on April 30, 2009 and announced a plan for a partnership with Italian automaker Fiat. After months of living on government loans, the nation’s third-largest car manufacturer finally succumbed to bankruptcy  caused by higher fuel prices, the recession and customer that were moving away from the gas-guzzling SUVs that were once big money makers. Chrysler  previously recorded assets of $39 billion.

 

9. Thornburg Mortgage

thornburg mortgage bankruptcy

Thornburg Mortgage Inc.,  an American publicly traded corporation headquartered in Santa Fe, New Mexico. Founded in 1993, the company was focused on real estate investment, acquisition and managing mortgages, with an adjustable rate. During the recent Financial crisis the company experienced financial difficulties related to the ongoing subprime mortgages, and it filed for bankruptcy on April 1, 2009. The company listed $36.5 billion assets in its bankruptcy filing.

 

10. Pacific Gas and Electric

On April 6, 2001, Pacific Gas and Electric filed for Bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The company, a unit of PG&E Corp. provided natural gas and electric service to approximately 12 million people in Northern and Central California, or about one in every twenty Americans.  Nether parent firm, nor any of its other units were included or are affected by the filing. Deregulation of electricity market and massive debt led to its bankruptcy protection. The company listed $36 billion assets in its bankruptcy filing.


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