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5 Companies that recovered from bankruptcy

Bankruptcy is often the end of a company, but it doesn't have to be in every case. The companies in the list above have re-emerged from bankruptcy to become profitable and successful. As an investor, it is useful to note that bankruptcy isn't always the end of the line for a company, and that through buying shares of companies as they emerge from bankruptcy, reorganization can be a potential source of excess returns.

Apple

It is hard to believe that the world's largest company by market capitalization was once in dire straits. While never actually filing for bankruptcy, Apple was on the verge of going bust in 1997. At the last minute, arch-rival Microsoft swooped in with a $150 million investment and saved the company.

General Motors

Following the financial crisis of 2008 and the Great Recession, General Motors, once the largest automobile manufacturer in the world, filed for bankruptcy and was ultimately bailed out by the federal government. Since then, the company has paid back its entire rescue package.

Chrysler

General Motors wasn't the only car maker to go bust in 2008. American car manufacturer Chrysler was actually the first to fall. Despite a $4 billion government bailout package, the company was forced to declare bankruptcy in 2009. It was later purchased by European car maker Fiat and has seen above average success and growth since.

Marvel Entertainment

With blockbuster movies such as "Spiderman," "The Avengers," and "Guardians of the Galaxy," it is surprising to note that the company filed for bankruptcy in 1996. This was before the company got into the movie-making business, when it focused solely on comic books. Today, the company's properties are worth billions of dollars with millions of fans around the world.

Six Flags

Theme park operator and amusement company Six Flags has 18 regional theme and water parks throughout North America, home to some of the world's biggest and fastest roller coasters. In 2009, however, the company declared bankruptcy after racking up more than $2.5 billion in debt which it could not pay back.

Bankruptcy is often the end of a company, but it doesn't have to be in every case. The companies in the list above have re-emerged from bankruptcy to become profitable and successful. As an investor, it is useful to note that bankruptcy isn't always the end of the line for a company, and that through buying shares of companies as they emerge from bankruptcy, reorganization can be a potential source of excess returns.

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