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GE to prepay pensions, repay loan in latest debt reduction move

GE to prepay pensions, repay loan in latest debt reduction move

FILE PHOTO: The General Electric Co. logo is seen on the company's corporate headquarters building in Boston, Massachusetts, U.S. July 23, 2019. Picture taken July 23, 2019. REUTERS/Alwyn Scott/File Photo

REUTERS: General Electric Co said on Tuesday it pre-funded pension plans and repaid some amount of an intercompany loan, actions that will help the industrial conglomerate cut its debt by about US$14.5 billion this year.

The actions are the latest in a series of steps that GE's top boss Lawrence Culp has taken this year to turn the company around by improving free cash flow and cutting debt.

The company voluntarily pre-funded US$2.5 billion of estimated minimum pension funding requirements for 2021, 2022 and 2023, it said on Tuesday. It also repaid US$1.5 billion of an intercompany loan to GE Capital. (https://invent.ge/36WjcIU)

The steps, along with scheduled maturities in the fourth quarter, are expected to cut debt by US$9.6 billion in GE Industrial and US$4.9 billion in GE Capital.

(Reporting by Shreyasee Raj; Editing by Shounak Dasgupta)

Source: Reuters

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