While that latter claim looks more tenuous, he is right that GE lacks enough cash to cover these sums, if correct. However, GE could still borrow funds, given that its net debt to ebitda ratio of 2.5 times is not outlandishly high.
GE said the allegations are false and misleading. That Mr Markopolos is working with an unnamed hedge fund and would profit from GE’s woes will raise eyebrows. That GE has problems is not in doubt. Whether it is on the path towards bankruptcy is another matter.