My understanding is that GE is simply understating the reserve account required to pay off long term expected liabilities by the 20 billion or whatever. So the balance sheet is way out of whack, but claims that they are going bankrupt as a result of this seems very unlikely, although he did state they don't present working capital projections or current ratios for whatever reason, which is worrying, kinda. I have zero idea how much money GE has borrowed from banks, but maybe this is an attempt to hide breach of covenants or something? (although that seems like a really amateurish way to do it, so I'm probably off base) Don't know, just speculating. Mostly likely result of this, I'm guessing, is a restatement of their financials going back 3 years, which will tank their stock, but again, actual declaration of bankruptcy seems unlikely.
Last edited by AnonymousStranger; 08-16-2019 at 03:09 PM.
|