Ford to buy back 2.7B Debt

ltd · 05-03-2009, 12:50 PM

This story, taken from news.com.au

Quote:

Ford to buy back $2.7 billion in debt amid restructuring
From correspondents in Chicago
Agence France-Presse
March 05, 2009 09:22am

FORD announced it would buy back $US1.8 billion ($2.7 billion) in debt amid a restructuring of its obligations aimed at reducing interest expenses.
The car maker also offered to pay a cash premium to induce bond holders to convert $US4.88 billion in debt for shares of Ford's common stock.

"The debt restructuring plan we are announcing today is a critical step in Ford's overall transformation,'' Ford President and CEO Alan Mulally said.

"We are continuing to work with all of our stakeholders - including employees, dealers and suppliers - to secure Ford's future in this difficult economic environment.''

Said it before and I'll say it again, Ford is in good hands with Alan Mulally the Boeing guru.

mrbaxr6t · 05-03-2009, 01:01 PM

wow, if they gonna buy debt this implies they have the cash to do so - good show

:

looks like they are "going better"

dom_105 · 05-03-2009, 01:32 PM

Good to have a safe set of hands at the wheel in rough times.

JPFS1 · 05-03-2009, 01:36 PM

Quote:

Originally Posted by mrbaxr6t

wow, if they gonna buy debt this implies they have the cash to do so - good show

:

looks like they are "going better"

doesn't necessarily mean that they have spare cash laying about to buy back this debt. It could just be that he's negotiated a better finance package enabling them to buy this debt, rolling it into a better deal.

All in all, Ford are in good shape (relatively) and will live through the storm.