GM shares fall below $1 as deadline approaches

Bankruptcy

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 percent 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 percent stake in the company but made no mention of existing shareholders.

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