We always hear about the great success stories of some of our favorite companies. We see their stocks go up year-over-year and just assume times have always been that way for them. But for some companies, this was not always the case. When companies find themselves in financial hardship, they are force to file for Chapter 11 bankruptcy protection. What this means is the company can undergo a reorganization of business affairs, debts, and assets in order to get themselves back on track.
While filing for bankruptcy means the company is not doing well financially, it does not necessarily mean that the company is definitely going out of business. During the financial disaster back in 2008, many automobile and gasoline industries had to file for bankruptcy that later came back from the dead to be very financially prosperous. Here are 7 multi-billion dollar companies that nearly failed and are now dominating the world.
Ally bank, now Ally Financial, was once known as the auto-financing arm of General Motors with its major focus being to extend credit to purchasers of its cars. But things went downhill when General Motors began to go bankrupt. Along with General Motors, Ally bank was bailed out for around $17 billion by the U.S. Treasury Department. Since then, Ally Bank has emerged as a profitable business $11 billion market capitalization.
Marvel Entertainment has given us hugely popular super hero comics such as “Captain America,” “Iron Man,” and “Spiderman,” so it may be weird to hear that the company actually filed for bankruptcy back in 1996. At that time, Marvel had to sell the rights to some of their most famous superheroes (including Spiderman and X-men) to movie-making companies in order to bail them out of their financial woes. Today, Marvel has produced some of the highest-grossing movies of all time and is now worth billions of dollars.