5 Biggest Bankruptcies the World has Witnessed

Every Company or organization is known and remembered by its success and Power . In this fast world, we just see the successful companies and forget the old Big companies due to their failure. The companies come and go like they never existed. Here is a list of 5 Biggest Bankruptcies the World has Witnessed.


5. Texaco Inc - $35.89 billion
Started of as Texas Fuel Company in 1901 in Beaumont, Texas, by Joseph S. Cullinan, Thomas J. Donoghue, Walter Benona Sharp, and Arnold Schlaet.
On April 12, 1987, Texaco filed for bankruptcy, but continued to function under protection of US bankruptcy laws.

4. Conseco Inc -$61.39 billion

Conseco was incorporated in 1979. It becames america’s top personal insurance company in a decade.Filed for Bankruptcy on December 18, 2002.Conseco got into trouble by piling debts over time. After losing the confidence of Wall Street its share crashed.




3. Enron Corp - $63.39 billion
Enron came into existence in 1985. It was named the ‘America’s Most Innovative Company’ by Fortune for six consecutive years.Enron filed for bankruptcy on December 2, 2001. Enron masked its financial probems so that it could continue taking credit, this got enron into trouble later.

2. Worldcom Inc - $107 billion

Worldcom founded in 1983 was one of the top American firms in the communications sector. Its rapid growth was attributed to the acquisition policies it had. Filed for bankruptcy on July 21, 2002.WorldCom’s CFO, Scott Sullivan, altered the accounts to show that companies financial position was good.

1. Lehman Brothers -$639 billion

Henry Lehman opened a dry-goods store (H. Lehman) in 1844, changed the name to “H. Lehman and Bro” after the joining of his brother Emanuel Lehman in 1847 and finally to “Lehman Brothers” in 1850 when his youngest brother Mayer Lehman joined him.

Declared itself bankrupt on September 15, 2008. Primary reason for bankruptcy was its heavy investements in securities linked to the US sub-prime mortgage market.