5 Bankrupt Companies That Came Back

Published on June 7, 2021 at 2:18 am by Ty Haqqi in News

In this article we are going to list the 5 Bankrupt Companies That Came Back. For a detailed coverage of this topic and a more comprehensive list, please head on over to 10 Bankrupt Companies That Came Back.

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5. Marvel (part of Walt Disney co (NYSE:DIS))

Marvel has throughout its history, never been as popular as it is now, especially with its movies tending to become billion dollar blockbusters and spreading into the mainstream like never before. However, things weren’t as rosy in 1996 and the company started reporting losses, resulting in laying off 275 employees. This led to a reorganization of the company, even as internal battles ranged, and even as the legal battle continued, Marvel was delisted from the New York Stock Exchange. Finally in 1998, ToyBiz and Marvel merged into Marvel Enterprises to bring it out of bankruptcy. It was bought by Walt Disney Co (NYSE:DIS) in 2009 for $4 billion.

4. Chrysler (part of Stellantis NV (NYSE:STLA))

One of two automobile companies on our list, Chrysler was affected by the auto-industry recession which was a direct consequence of the Great Recession. Even though it is still considered one of the three big automobile manufacturers in the United States, it very nearly met a premature demise when in 2009, it filed for a Chapter 11 bankruptcy based on its ability top operate on a going concern basis, which allowed it to restructure its debt as well as other negotiations. This also led to the corporation defaulting on around $4 billion in debt. The US Treasury invested around $12.5 billion in Chrysler to help it navigate this stretch, which resulted in the department losing around $1.3 billion when it sold the shares.

2019 Chrysler 300C

3. General Motors Company (NYSE:GM)

One of the biggest automobile manufacturers in the world, General Motors Company (NYSE:GM) suffered a turbulent time during the Great Recession, which hit the auto industry particularly hard and had to file for bankruptcy in 2009, which resulted in reorganization of the company. The company ended up selling assets as well as subsidiaries and its logo to a new company, while keeping liabilities, therefore enabling the new company to be free of debt. There was significant investment by the US Treasury Department as well to ensure that the company remained afloat, though it made a $10 billion loss on its investment. The Treasury Department also invested $17.2 billion in the financial arm of General Motors Company (NYSE:GM), and was able to make a $2 billion profit from its investment when it sold the shares. It is estimated that the bailout of General Motors Company (NYSE:GM) resulted in the preservation of 1.2 million jobs as well as nearly $35 billion in revenue.

Linda Parton / Shutterstock.com

2. Delta Air Lines, Inc. (NASDAQ:DAL)

Delta Air Lines, Inc. (NASDAQ:DAL) currently operates more than 5,400 flights daily, serving destinations in at least 52 countries and is one of the biggest airlines in the world. However, things haven’t always been so rosy for such a major company, and in 2005, because of a major increase in fuel costs, Delta Air Lines, Inc. (NASDAQ:DAL) had to file for bankruptcy. It later managed to emerge from the bankruptcy in 2007 and even had to fight an attempted hostile takeover by American Airways on its way to doing so.

Pixabay/Public Domain

1. American Airlines Group Inc (NASDAQ:AAL)

Topping the list of 10 bankrupt companies that came back is American Airlines Group Inc (NASDAQ:AAL), which is biggest airline in the entire world and among the biggest transportation companies in the world as well. The airline has to handle more than 200 million passengers every single year and more than half a million every single day. Its parent company, AMR Corporation, filed for bankruptcy in 2011 after a severe downturn in the airline industry. However, American Airlines merged with US Airways and kept its name in 2013, and has since seen significant success. The company is currently in the midst of another crisis as travel has decreased significantly over the past year because of the pandemic.