We think that the phrase that sums up the story here is 'jump ship before it sinks to the bottom of the sea'. As General Motors heads towards bankruptcy or a restructuring that would ultimately wipe out existing shareholders, everyone is looking to dump their stocks. Just a day after it became known that six high-ranking GM executives including former vice chairman and product chief Bob Lutz and his successor Thomas Stephens sold their shares and liquidated their remaining direct holdings, the company's stock sunk more than 22 percent or 31 cents at $1.13 on Tuesday, the lowest since 1933.
The other executives who followed in the footsteps of Lutz and Stephens were GM North America President Troy Clarke, Chief Information Officer Ralph Szygenda, manufacturing chief Gary Cowger and the firm's head of European operations Carl-Peter Forster.
The two remaining solutions for GM is either a bankruptcy filing by a government-imposed deadline of June 1 (that's only two weeks from now), or an out-of-court restructuring plan that will essentially eliminate the firm's current stockholders as the company would have to issue new shares to pay off its creditors.
Via: Yahoo Finance