General Electric (GE) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : General Electric (GE)

GE 307.27

+0.7%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bonefish who wrote (2985)	12/8/2018 1:30:01 PM
From: E_K_S	Read Replies (2) of 3256

It's possible w/ the dividend cut and the restructure in their performing assets, sales and some negotiations w/ debtors and/or unions on pension COLA increases, GE may/could do this w/o a structured BK. The structured BK gives management much more leverage when getting concessions. The losers are not only those w/ pensions but the common shareholders get wiped out. But the New GE survives! I believe the new GM did take on much of the old pension obligations which were restructured and the math worked on the new company's cash flows to fund their payment. I think part of the deal was also buy out packages for older and/or near retirement employees and those obligations went to the PBGC (w/ some payments by the old GM). The point is that the work out is difficult and takes years. Also, you have to have the stock market grow (pension reserves are typically invested in the stock market) and/or have pension reserves scaled into fixed income (w/ guarantee payoffs think of maturing bond ladder) at much higher rates or the future pension obligations (especially those w/ COLA's) can not be funded. ---------------------------------------------------------------------- The new management and/or the analysts have not discussed the elephant in the room (at least from my look at things) and that are these pension liabilities especially in the out years. What's your take? I can not think of any other Exit Strategy that tackles this issue. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next