This post will show that does not matter the size of some business, insolvency problems can be at any company.

1. Three successful
American cases
overcoming
bankruptcy
By Suzzanne UhlandImage courtesy of Dave Pinter at Flickr.com

2. We all known that the United States economy is
the biggest and more profitable around the
world, where companies from every sector have
succeeded being huge and giant corporations
around the planet. Their triumphs and
accomplishments are due to the trading laws
working in the American market. However, there
have been some bankruptcy and failures cases,
where some businesses have worked in the
wrong way, being unable to adapt to new
commercial and economic challenges.

3. In this post, we will see some of the most
important bankruptcy cases in the American
history, where these companies have failed in
multiple aspects, taking them to their ruin, but
later surpassing it. In addition, this article will
expose and show that not matter how big and
great the organization is, if it does not take the
correct and appropriate financial and
commercial decisions, it could face a
bankruptcy process. In other words, this post will
show that does not matter the size of some
business, insolvency problems can be at any
company.

4. Bankruptcy and the chapter 11
Before we talk about these cases, it is important
to have clear in a few words what bankruptcy
and the chapter 11 are. Basically, a bankruptcy
process is a legal status where some business
cannot pay its debts and credits. Put differently,
it is when some company is unable to meet their
payments and debts to its creditors. When this
situation exists, companies submit under the
chapter 11 of the United States Bankruptcy
Code, which let institutions with financial
problems to reorganize under the law protection.

5. In almost every country around the world, when some
company is unable to pay its debts, it could
renegotiate its payments, saving the organization. But
there are some circumstances where these
organizations do not have the enough solvency to be
responsible for their financial obligations, taking them
to bankruptcy. In the United States, the chapter 11 of
the United States Bankruptcy Code, gives to these
businesses the possibility to save their patrimony being
supported by the law.
With the bankruptcy and chapter 11 concepts
understood, then we can see some of the most
important and critical bankruptcy cases in the United
State history, which have not only brought financial
problems for this country, but also for other nations in
the world.

6. Pacific Gas & Electric Co
Founded in 1905 in San Francisco, California, this
giant electricity and natural gas organization
faced a bankruptcy process being part of
chapter 11 in 2001. In 1998, after being the
organization with the largest utilities in this state,
the California Public Utility Commission decreed
a new tariff for customer electricity consume,
forcing the Pacific Gas & Electric Co to buy
energy in other states outside California to keep
their rates profitable after the new decree, which
caused a utilities fall.

7. After this situation, the Pacific Gas & Electric Co
adopted the chapter 11 of the United States
Bankruptcy Code, to get support from the law
and surpass its financial crisis. Three years later,
after being part of some financial and
commercial restructuration, the Pacific Gas &
Electric Co left bankruptcy, paying more than
$10 billion dollars in debts.
Currently, the Pacific Gas & Electric Co provides
its electricity and gas services to more than 5
million households from Bakersfield to Oregon,
having revenues of more than $15 billion dollars
per year and employing more than 20.000
workers.

8. Chrysler
Founded in 1925 by Walter Chrysler, this
American car brand has been one of the most
iconic and recognized companies in the car
industry around the world. In 2008, this industry
went into crisis, affecting automotive
organizations in America, Europe, and Asia. Due
to this crisis, Chrysler was seriously distressed,
adopting the chapter 11 in 2009, for having
debts for more than $40 billion dollars.
After being declared in bankruptcy, Chrysler
negotiated with the Italian car maker Fiat, selling
to them the 35% of its organization, and giving to

9. this Italian brand the possibility for being part of
the American market with their vehicles. Besides
this negotiation, Chrysler had to restructure its
operation, being more effective in its procedures
and manufacturing processes. In 2011, Chrysler
left bankruptcy, after paying its debts for more
than $40 billion dollars.
Today, this corporation is again that iconic car
company distributing models like the Chrysler
300, the Chrysler Pacifica and the Chrysler 200. In
addition, due to this crisis, Fiat started to
participate in the American car market with its
models.

10. CNO Financial Group, Inc.
Founded in 1979 under the name of Conseco,
this financial organization faced a bankruptcy
process in 2002, being the third largest case
adopting the chapter 11 in the United States
history. One year later, this corporation left
bankruptcy, after paying more than $61 billion
dollars in debts. Today, the CNO Financial Group
has headquarters in Carmel, Indiana, operating
incomes for more than $370 million dollars and
employing more than 5.000 people.
Related: Some important alternatives to deal
with bankruptcy by Suzzanne Uhland