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GM Stocks Plunge After Shareholder Warning

General Motors shares fell Thursday on news it is 'highly unlikely' that shareholders will be able to recover any of their investments when GM emerges from bankruptcy.

NEW YORK (AP) -- General Motors Corp. shares tumbled in over-the-counter trading Thursday after the automaker said that it is "highly unlikely" that its shareholders will be able to recover any of their investments when the company emerges from bankruptcy protection.

In morning trading, GM shares dropped 22 cents, or 13.8 percent, to $1.36, after falling to $1.28 earlier in the day.

The drop same after six-straight days of gains for the Detroit-based automaker, which filed for Chapter 11 on June 1 and was subsequently delisted from the New York Stock Exchange. In the last six days, GM shares have more than doubled to close Wednesday at $1.59.

"While GM does not control the market or its stock price, GM management strongly believes that any recovery for the common stockholders in the chapter 11 bankruptcy process is highly unlikely, even under the most optimistic of scenarios," the company said in a statement late Wednesday.

In a chapter 11 situation, shareholders generally only receive a return on their investment if all claims of the company's creditors are fully paid.