GE to Lose $4.4 Billion on Airlines
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WASHINGTON (AP) _ General Electric Co. Tuesday said it could lose up to $4.4 billion in loans, leases, guarantees and financing commitments to US Airways and United Airlines.
The company disclosed the information in a filing with the Securities and Exchange Commission.
US Airways Group Inc. filed for bankruptcy in August, and UAL Corp., the parent United Airlines, is considering a bankruptcy filing.
GE said it has been in discussions with both airlines and has made a provision for probable losses.
The loans, leases and guarantees made to US Airways and United are secured by aircraft and aircraft engines, the filing said.
The filing said GE’s investments in and commitments to customers in the telecommunication and cable industries was about $12 billion as of Sept. 30.
The company has made provision for probable losses, the filing said.
New York Stock Exchange listed GE shares closed Tuesday at $25.85, down 40 cents, or 2 percent.