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Strategies & Market Trends : Value Investing
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To: John Koligman who wrote (59938)10/13/2017 9:50:24 PM
From: E_K_S  Read Replies (3) of 78802
 
I sort of remember something similar as part of the BK but it was not as large as I thought. It would be interesting to see what was done (all of the components) as GE may have some of those options available.

In the article on the GE unfunded liabilities, there was one part that said GE could "offload" some of that liability through asset/division sales (this might have been done w/ the recent ABB transaction) and/or other restructure options.

Would this include early retirement option? I know that when I worked for Lockheed, the company had new hires in a 401K plan (w/ company matched funds) but not part of the pension program (that was being phased out). I sure hope GE is doing that w/ new hires.

Would another option for GE be offloading a portion of that to an insurance company? How does that work and does the company make a one time write down payment to the insurance company? I am sure that can be quantified. Then we can better determine the current value of the company.

I suspect this type of 'value' analysis for unfunded pension liabilities will be more common in the future. I do know that many States and City municipalities have no way of meeting their pension obligations and even the teacher's unions may/could have issues too.





EKS
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