All is not lost for the economically bankrupt as some legendary businessmen have proved in the past. Sometimes, it’s simply the beginning of a new journey.
Donald Trump
This maverick businessman with his extravagant lifestyle filed for bankruptcy for his casino business twice—in 1992 and 2004. At one point, his personal debt was around $900 million. By 2008, though, Forbes pegged his wealth at $3 billion.
Henry John Heinz
The German-American whose business of grated horseradish went bankrupt in 1975 due to an over production of the crop— launched a new company within months—with several new products, including the now famous tomato ketchup.
Walt Disney
The father of animation filed for bankruptcy in 1920 after one of his main clients went bust. Apparently, those dark days helped him create one of his most enduring characters—Scrooge McDuck!
A closed chapter?
Since September 2008, several of United States’ biggest firms have filed for bankruptcy under Chapter 11. Here are the five biggest. Lehman Brothers
Pre-bankruptcy assets: $691 billion The bank filed for bankruptcy under Chapter 11 on September 15, 2008 but changed the filing to Chapter 7 bankruptcy following an exodus of employees and clients and devaluation of its assets. It is the largest bankruptcy in U.S. history till date. Washington Mutual
Pre-bankruptcy assets: $327.9 billion On September 26, 2008 the US financial crisis deepened with the 119-year-old banking institution Washington Mutual filing for bankruptcy protection after selling its banking operations to JPMorgan Chase. Chrysler
Pre-bankruptcy assets: $39.3 billion USA’s third-largest car maker Chrysler succumbed to bankruptcy on April 30, 2009, pinning its future on a complete reorganisation and plans to build cars in an alliance with Italian automaker Fiat. General Motors
Pre-bankruptcy assets: $91 billion General Motors filed for Chapter 11 bankruptcy protection on June 1, 2009 as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government. Thornburg Mortgage
Pre-bankruptcy assets: $36.5 billion Thornburg Mortgage Inc., a US provider of “jumbo” mortgage loans, filed for Chapter 11 bankruptcy protection on May 1, 2009 in Maryland, announcing plans to wind down and sell off key units. —Dhiman Chattopadhyay |
