August 6, 2002 |
Montgomery Ward's unsecured creditors won a bankruptcy judge's approval of a liquidation plan for the defunct retailer and the right to sue its owner, GE Capital Corp., for at least $500 million. U.S. Bankruptcy Judge Raymond Lyons approved the plan, which hinges on fraud claims by creditors against General Electric Co.'s GE Capital unit.
July 27, 2002 |
General Electric Co. on Friday announced a surprise shake-up of its profit-driving financial services arm, splitting GE Capital into four separate parts in a bid to give investors a sharper picture of the unit's operations and results. GE Capital, which generates 40% of GE's earnings, will be split into insurance, commercial finance, consumer finance and equipment units, each reporting to GE Chief Executive Jeffrey Immelt and Vice Chairman Dennis Dammerman.
January 22, 2002 |
Montgomery Ward & Co. creditors sued GE Capital Corp. for more than $1 billion, claiming the financial services unit of General Electric Co. benefited unfairly from the defunct department store chain's bankruptcy at their expense. Montgomery Ward filed for bankruptcy and announced it was going out of business 13 months ago. The Chicago-based company first filed for Chapter 11 in July 1997.
December 29, 2001 |
Xerox Corp. received $340 million from General Electric Co. as part of a plan for its finance arm to take over most of the largest copier maker's customer equipment financing. The money from GE Capital, the biggest non-blank finance company, is secured by a portion of U.S. lease receivables. The financing was arranged in September, a Xerox spokeswoman said. Xerox increased its cash balance to about $3.9 billion with the financing and after the repayment of $1.
December 19, 2001 |
General Electric Co. is cutting 3,000 jobs at GE Capital, the source of about 40% of the company's profit, and will exit some financing businesses to reduce expenses and keep earnings rising. GE Capital is consolidating administration at some of its 24 businesses, such as European equipment financing. It has stopped selling mutual funds and other lower-margin products directly to consumers. The job cuts and exiting of product lines are expected to save $400million next year.
December 15, 2001 |
General Electric Co.'s GE Capital agreed to buy Security Capital Group Inc. for $4 billion in cash and stock to gain real estate assets including storage facilities, shopping centers and parking lots. GE Capital said it will pay $2.9 billion in cash to Security Capital Class B shareholders and $1.1 billion of ProLogis Trust shares held by Security Capital. The transaction values Security Capital at $26 a share. Security Capital's stock closed at $20.70, up 3 cents, before the deal was announced.