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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (108105)	6/11/2001 6:14:42 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Bear Stearns cuts ratings on freight carriers. Disregard, economy-specific clap-trap: cbs.marketwatch.com;

To: patron_anejo_por_favor who wrote (108105)	6/11/2001 6:57:04 PM
From: Ken98	Respond to of 436258

<<GE Capital seen facing big risks on telecom loans-FT NEW YORK, June 11 (Reuters) - GE Capital, the financial arm of conglomerate General Electric Co. (NYSE:GE - news), has hundreds of millions of dollars at risk in loans to struggling telecommunications companies, the Financial Times reported in its online edition on Monday. ADVERTISEMENT The paper reported specialists in distressed debt as saying that GE Capital has had to take action to limit its exposure as the telecoms loan crisis has widened. GE Capital does not break down its exposure to the telecoms sector in reports on its 24 different businesses, which range from truck leasing to credit card services, the paper said. The group's investments include equity, debt, structured products and vendor finance, the paper noted. A number of GE clients have sought bankruptcy protection from their creditors, the paper said. Of five telecoms groups that have announced loans from GE's Vendor Financial Services (VFS) unit since October, two have filed for Chapter 11 protection under the US bankruptcy code, it said. GE Capital was reported as saying VFS's exposure to the telecoms sector was less than 10 percent of its overall exposure, which is tied to $16 billion of assets, and emerging company loans were balanced by loans to established groups. A separate unit, GE Capital Telecom, has invested more than $2 billion in the last five years in equity, debt and structured finance for telecoms companies worldwide, the paper said. GE said less than 15 percent of the investment was in competitive local exchange carriers (CLECs), which have been hardest-hit by the telecoms crisis, the paper reported. GE Capital was reported as saying it was now doing less lending to telecoms companies because ``there are fewer opportunities that meet our stringent requirements''.>>