Terming that auto maker is “no longer suitable for listing,” the NYSE, in a statement said it has determined that the “common stock of General Motors (GM)... should be suspended prior to the opening on June 2, 2009.”
“This decision was reached in view of the June 1, 2009 announcement of a voluntary filing by the company and three domestic subsidiaries for relief under Chapter 11 of the US Bankruptcy Code with the United States Bankruptcy Court in the Southern District of New York,” the bourse noted.
The statement also said that there is uncertainty as to the timing and outcome of the bankruptcy process, including the planned sale of substantially all of the auto maker’s global assets to a new entity, as well as the ultimate effect of this process on the company’s equity holders and creditors.
Citigroup replaced
Meanwhile, General Motors will be replaced by Cisco Systems Inc in the Dow Jones Industrial Average and Citigroup Inc will be replaced by Travelers Companies Inc Dow Jones Indexes said on Monday.
“The parlous state of GM has left us with no choice but to remove it from The Dow. A bankruptcy filing immediately disqualifies a stock regardless of a company’s history or its role as a cultural icon,” said Robert Thomson, Managing Editor of The Wall Street Journal and editor-in-chief for all of Dow Jones in a press release.