GE raised lot of short term cash using it's commercial paper offers. Lower rates than bonds or bank credit. 3-5% difference in weighted average capital costs.
With ratings down, commercial paper dries up (no takers at lower rates). Cost of borrowing goes up at the same time rates are rising and debt is all time high.
Cash flow is the most important metric in any business. It is like oxygen.
Woes in power segment are choking off oxygen for whole company. It is race between fixing the cash flow in power before liquidity crisis wipes out shareholders.
It is not fatal if fixed in time. Apple came within 2 months of bankruptcy in 96 before getting Bill Gates to the rescue. Culp could become a legend if he can turn this around. Or just roadkill
Thought this was an accurate explanation of some issues tha GE is facing. Posted originally on another thread by @VU5ufaV-2tmj