gustav129
03-04-2009, 04:59 PM
Ford to cut $10B in debt with cash, equity offer
http://news.yahoo.com/s/ap/ford_tender_offer
DEARBORN, Mich. – Ford Motor Co. said Wednesday it will try to eliminate up to $10.4 billion of its debt by offering debtholders cash and stock as the troubled automaker continues to restructure amid a severe automotive sales downturn.
The Dearborn-based company and its financial arm are putting up $2.2 billion in cash and about 500 million shares of stock to entice holders of bonds and secured-term debt into the swap. The company said reducing the debt will cut the amount it pays in interest and put it in better position to compete with General Motors Corp. and Chrysler LLC.
"This is all part of a restructuring plan to make the company healthier in the end," said Ford spokesman Mark Truby....
...Ford said Wednesday that it still does not intend to seek government loans.
http://news.yahoo.com/s/ap/ford_tender_offer
DEARBORN, Mich. – Ford Motor Co. said Wednesday it will try to eliminate up to $10.4 billion of its debt by offering debtholders cash and stock as the troubled automaker continues to restructure amid a severe automotive sales downturn.
The Dearborn-based company and its financial arm are putting up $2.2 billion in cash and about 500 million shares of stock to entice holders of bonds and secured-term debt into the swap. The company said reducing the debt will cut the amount it pays in interest and put it in better position to compete with General Motors Corp. and Chrysler LLC.
"This is all part of a restructuring plan to make the company healthier in the end," said Ford spokesman Mark Truby....
...Ford said Wednesday that it still does not intend to seek government loans.