A number of GM executives have liquidated their remaining GM stock, helping to send the GM share price down to new depths.
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In US regulatory filings it has emerged that Bob Lutz sold US$130,989 worth of GM stock at the closing price of US$1.61 at the end of last week.
Other GM executives, including Thomas Stephens, Ralph Szygenda, Gary Cowger and Carl-Peter Forster also sold all of their remaining GM stock.
The sell-off reflects near terminally bad prospects for GM shareholders.
If the company files for Chapter 11, which is looking increasingly likely, shares become worthless. But alternatively, if it stays out of bankruptcy, shareholders still lose out because they’ll get less than 1% of the stock in a revived company (under current plans the government gets around 51%, UAW 39% and bondholders 10% – leaving 1% to be found from ‘around the edges’).
That could mean existing shareholders get less than two cents a share.
GM’s share price yesterday plummeted to US$1.15, 20% down on the day. A year ago the price was over US$20 a share.
