Thread regarding AT&T layoffs

"AT&T With about $183 billion of debt outstanding, it is one of the most indebted companies on the planet"

Not good. Not good at all.

https://www.nytimes.com/2018/11/26/opinion/corporate-debt-bubble-att-ge.html?action=click&module=Opinion&pgtype=Homepage

"In the last decade, well-established companies including G.E., AT&T, CVS Health, Sherwin-Williams and Campbell Soup went on acquisition binges fueled largely by cheap borrowing. As interest rates rise and the economy appears to be slowing, they are in not-insignificant danger of defaulting on the debt, a fear that has started to cause disturbing ripples in the debt and equity markets."

"G.E. has $115 billion of outstanding debt, about $20 billion of which is due within a year, and it is “burning cash,” according to a recent report by a JPMorgan analyst. Its pension plan has gone from a surplus to reportedly being underfunded by some $29 billion"

"Then there is AT&T. With about $183 billion of debt outstanding, it is now one of the most indebted companies on the planet, thanks to its recent acquisitions of DirecTV and TimeWarner, which were paid substantially with debt. AT&T’s debt is also rated BBB, although only about $11 billion is coming due within a year. The company’s chief financial officer has said that AT&T will be able to “manage its obligations” from the cash it is generating. But the heavy debt load leaves little margin for error, making a tricky merger — combining a legacy phone company with a major content provider — even more difficult. “I’m not even sure what AT&T is anymore,” said Christopher Whalen, the founder of Whalen Global Advisors, an advisory and economic research firm. “It’s kind of a resurrected zombie.”

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| 3307 views | | 7 replies (last November 28, 2018) | Reply
Post ID: @OP+WlwlNTx

7 replies (most recent on top)

Bond Credit markets will destroy T.

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Post ID: @1kvs+WlwlNTx

That wireless preferred stock... hmmmm. That sounds fishy. Kinda like that wireless tracking stock that bombed in the early days of wireless...

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Post ID: @ljv+WlwlNTx

Lol. People are finally starting to notice what we’ve all known for some time. Hang on folks- this is gonna be a bumpy ride...

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Post ID: @xbt+WlwlNTx

A week after I left, I flipped my pension into a 401k away from the company.

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Post ID: @nul+WlwlNTx

Yes, the made up out of thin air "AT&T WIRELESS PREFERRED STOCK" in our pension fund is real reassuring !!!

I used to think ... who cares, the pension fund guaranty fund (PBGC) will cover us ... lol ... do yourself a favor and go and read up on this "underfunded rescue fund" !!!

I would have liked to get an annuity pension next year at my magic number but instead I will be taking a lump sum and using their retiree medical insurance for as long as it is viable ... i.e. until they screw that up as well.

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Post ID: @ria+WlwlNTx

I could not expect anything else from the master of deception AT&T, if is dubious and borderline illegal AT&T is there!

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Post ID: @ojy+WlwlNTx

Add to that . . . ATT's pension fund is only about 75% funded and that 75% includes a large amount of a special class of ATT preferred stock (esssentially an IOU). This special class of prreferred stock was created just to address a serious underfunding problem (at least on paper) in 2012. If ATT were to default on all this debt and its pension obligations, the impact on the financial system and the US economy would be enormous. It's stunning to think that the US government stood by and watched as these fools built this bomb, especially after the events of 2008. If you want a scary look into what else the ATT geniuses have done, read the followind old article from Forbes: https://www.forbes.com/sites/edwardsiedle/2012/10/25/att-proposes-massive-dump-of-company-stock-into-pension/#642b7c0d5e8d

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Post ID: @cua+WlwlNTx

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