Ford Motor Co. to repay $4B more in debt, reducing load to $27 billion
By APWednesday, June 30, 2010
Ford Motor to repay $4B more in debt
DETROIT — Ford Motor Co. says it’s making another $4 billion payment on its huge debt.
The company will pay $3.8 billion in cash to a United Auto Workers trust fund that pays retiree health care bills.
It also will pay $255 million in dividends on preferred securities that had been deferred as the automaker worked its way through financial troubles.
Ford says the payments are a sign of confidence that its restructuring plans are working.
The company says the actions will reduce its debt to around $27 billion. It had $34 billion in debt on March 31.
The automaker borrowed more than $23 billion to avoid bankruptcy and make it through the recession. But recently it has recorded sales gains and four straight quarterly profits.
