force ▁reduction ▁of ▁ 7 % ▁were ▁not ▁enough ▁to ▁allow ▁US G ▁to ▁service ▁the ▁deb t ▁pay ments ▁($ 8 0 0 , 0 0 0 ▁per ▁day ) ▁in ▁the ▁economic ▁dow nt urn . ▁ ▁The ▁poison ▁pill ▁was ▁too ▁much ▁for ▁the ▁corpor ation ▁to ▁surv ive . ▁ ▁Bank rupt cy ▁On ▁March ▁ 1 7 , ▁ 1 9 9 3 , ▁US G ▁file d ▁a ▁pre - pack aged ▁bank rupt cy ▁pet ition ▁that ▁included ▁a ▁ 5 0 - to - 1 ▁reverse ▁stock ▁split . ▁ ▁US G ' s ▁stock ▁di pped ▁to ▁ 2 8 ▁c ents ▁per ▁share ▁and ▁the ▁corpor ation ▁emer ged ▁from ▁bank rupt cy ▁ 3 8 ▁days ▁later ▁on ▁May ▁ 6 , ▁ 1 9 9 3 . ▁ ▁The ▁corpor ation ' s ▁deb t ▁was ▁reduced ▁by ▁$ 1 . 4 ▁billion ▁and ▁interest ▁costs ▁dropped ▁from ▁$ 3 2 0 ▁million ▁per ▁year ▁to ▁$ 1 7 0 ▁million ▁per ▁year . ▁ ▁The ▁plan ▁worked ▁and ▁US G ▁re - emer ged ▁to ▁be ▁a ▁prof itable ▁corpor ation . ▁ ▁US G ▁once ▁again ▁declared ▁bank rupt cy ▁on ▁June ▁ 2 5 , ▁ 2 0 0 1 ▁under ▁Chapter ▁ 1 1 ▁to ▁manage ▁the ▁growing ▁as best os ▁lit ig ation ▁costs . ▁US G ▁was ▁the ▁e ighth ▁company ▁in ▁an ▁ 1 8 - month ▁period ▁that ▁was ▁forced ▁to ▁util ize