Ford Completes Debt Restructuring, Reduces Debt By $9.9 Billion

FoMoCo announced today that it has successfully completed its debt restructuring reducing it by $9.9 billion from $25.8 billion on Dec. 31, 2008. This will reduce Ford’s annual cash interest expense by more than $500 million based on current interest rates.
“By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise,” said Ford President and CEO Alan Mulally. “As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth.”

Through its finance arm Ford Motor Credit, Ford used $1 billion in cash to buy back $2.2 billion of debt at 47 cents on the dollar and $1.1 billion in cash to purchase $3.4 billion of unsecured notes.
Read Article

zairnaim - 4/6/2009 3:41:09 PM

+3 Boost

Nice job ford! hmmm so American cars might still have a future.... Hopefully GM follows the lead. Chrysler is doomed and I couldn't care less about their future, Sadly they are bringing jeep down with them.

nipsip - 4/6/2009 4:46:46 PM

-2 Boost

Will dilute the stock, as if Ford cares.

inspirion7 - 4/6/2009 6:48:49 PM

+2 Boost

Ford, like most companies now, are looking to survive more than stock dives. They are in a battle for their existence. Now i won't pretend to know much about finance, but the future can't look as bad as the past did just 1 year ago. I glad they are pro-active.

91z4me - 4/7/2009 12:41:48 AM

+1 Boost

D*mn it! Will I told you to stop diluting the stock, it is fine as it is. Idiots, sometimes they just don't listen.