1. Lehman Brothers Holdings Inc; $639 billion
The Lehman Brothers bankruptcy, is without a doubt, the largest bankruptcy ever: the size is estimated between $613 billion and $639 billion!
What began life as a general store set up by three German immigrant brothers to the United States, over the years turned into one of US's largest investment banks.
The amazing story of Lehman Brothers' story started in 1844, when 23-year-old Henry Lehman, son of a cattle merchant, emigrated to the United States from Rimpar, Bavaria. He settled down in Montgomery, Alabama, and opened a dry-goods store -- H Lehman.
Later, when his brothers, Emanuel and Mayer, joined him the company changed its name to Lehman Brothers.
The global financial-services firm, which did business in investment banking, equity and fixed-income sales, research and trading, investment management, private equity, and private banking declared itself bankrupt on September 15, 2008.
2. Worldcom Inc; $103.91 billion
Founded in 1983 as LDDS Communications, Worldcom became America's second-largest long-distance company and the largest handler of Internet data. It is also the US's second largst bankruptcy ever at $103.91 billion!
WorldCom growth was fueled primarily through acquisitions during the 1990s and reached its apex with the acquisition of MCI in 1998.
On November 10, 1997, WorldCom and MCI Communications announced their $37 billion merger to form MCI WorldCom, making it the then largest merger in the US. On September 15, 1998 the new company, MCI WorldCom, opened for business. Later, in 2000, MCI WorldCom renamed itself 'WorldCom'.
WorldCom, plagued by the rapid erosion of its profits and an accounting scandal that created billions in illusory earnings, filed for bankruptcy on July 21, 2002.
3. Enron Corp; $63.39 billion
Fortune named it 'America's Most Innovative Company' for six consecutive years. It was on the Fortune's '100 Best Companies to Work for in America' list in 2000. It was hailed by many, including labor and the workforce, as an overall great company, praised for its large long-term pensions, benefits for its workers and extremely effective management until its exposure in corporate fraud.
Enron Corporation, the Houston based energy giant was originally involved in transmitting and distributing electricity and gas throughout the United States. It remains US's third largest bankruptcy till date: $63.39 billion.
The company developed, built, and operated power plants and pipelines. It owned a large network of natural gas pipelines which stretched ocean to ocean and border to border.
Enron filed for bankruptcy on December 2, 2001.
4. Conseco Inc; $61.39 billion
From a small company set up in 1979, Conseco became one of the largest US home lenders and personal insurers by the late 1990s. Unfortunately, it collapsed under the weight of debts caused by it ambitious expansion and mounting bad loans. At $61.39 billion, Conseco filed for what is US's 4th largest bankruptcy petition.
The Carmel, Indiana-based company has struggled since piling up massive debts in a 1990s acquisition binge under flamboyant founder and chief executive Stephen Hilbert, capped by a disastrous purchase in 1998 of loan firm Green Tree Financial.
That deal exposed Conseco to a mountain of bad loans -- largely on mobile homes and manufactured housing -- which worsened as the economy turned sour.
Conseco piled on even more debt and made problems for itself in the late 1990s by aggressively accounting for gains from securitizing its loans. It later abandoned that practice under pressure from investors, which led to a restatement of several years' profits. That shook Wall Street's confidence in the company, and eventually led to Hilbert quitting in 2000.
The bankruptcy was filed to the United States Bankruptcy Court for the Northern District of Illinois on December 18, 2002.
AND MANY MORE...................
