By Ellis Mnyandu

NEW YORK, July 2 (Reuters) - U.S.-traded shares of overseas companies slid on Wednesday as investors worried about the corporate profit outlook and a major brokerage's warning that General Motors Corp's (GM.N: Quote, Profile, Research) bankruptcy is not impossible.

The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) slid 1.6 percent while the 30-share Dow Jones industrial average .DJI tumbled 85 points, or 0.8 percent, to 11,292.72.

GM shares were among the Dow's top drag, falling more than 14 percent to $10.06 on the New York Stock Exchange.

GM's slide came a day after the automaker posted an 18.5 percent drop in June sales, before adjusting for three fewer sales days in the month compared with a year earlier.

Merrill Lynch said GM, grappling with falling demand for highly profitable trucks and SUVs as gasoline prices soar, will need to raise as much as $15 billion in cash to shore up its finances and bankruptcy is "not impossible" if the U.S. auto market continues to slump. For details, see [ID:nN02356352].

And with shares of GM on the skids, investors also pummeled shares of other automakers, including shares of Japanese rivals.

U.S.-listed shares of Honda Motor Co (7267.T: Quote, Profile, Research) fell 1.2 percent to $33.61 on the New York Stock Exchange, while ADRs of Nissan Motors NSANY.O fell nearly 3 percent on Nasdaq. Shares of Toyota Motor Co (7203.T: Quote, Profile, Research)(TM.N: Quote, Profile, Research) dropped 2.1 percent to $91.68 on the NYSE.

The Bank of New York Mellon's index of leading European ADRs fell 1.2 percent. In Europe, shares ended at intraday lows on Wednesday following a sharp drop in coal prices which weighed heavily on mining stocks. A solid recovery among banks placed a cap on losses.