Thread regarding General Electric Co. layoffs

No, GE should not be broken up

Right now GE can hide behind opaque accounting and promises of future cash flows. Selling the parts means converting assets to cash. That would remove any doubt as to asset value and eliminate any hope of future cash flows.

The worst case scenario is that the cash would not be enough to cover the liabilities and the company would go bankrupt leaving creditors out of pocket, shareholders holding nothing and employees out of work, losing both pension and outstanding compensation payments.

GE has a lot of intangible assets that can't be converted to cash, tangible assets that are worth less than book, and is in a weak bargaining position since potential buyers know how bad they need to sell.

Excellent post on why GE is not better off breaking up in parts. Posted by @Sl8gjNs-1cjm.

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| 1941 views | | 4 replies (last March 27, 2018) | Reply
Post ID: @OP+SoFvPg9

4 replies (most recent on top)

...losing both pension...

Fake news.

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Post ID: @clw+SoFvPg9

Wonder how long until the execs start running for the exits now that more of their compensation is in worthless stock options.

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Post ID: @ung+SoFvPg9

If they break it up ..why do you need GE in Boston? Not a likely move and why do you need a board the size that it is...

Breakup is all talk. Their books are for sheet. I see more smoke and mirrors for months to come. We will still talking about this in 2019 and 2020. No easy fix, JF is screwed for years to come. Not much air left in the hot air balloon. He carve off the arms and legs of GE (profitable division parts) but the stinking body mass is going to still be there to deal with.

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Post ID: @tbs+SoFvPg9

The best thing to do is to sell assets that aren't doing so well and put all the cash on the roulette tables in Monte Carlo. Better to go out with a bang than a whimper. Too many momma's boys on here and not enough men.

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Post ID: @ony+SoFvPg9

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