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Ford US extends, restructures $7.9 billion debt

By Matt Brogan |

Ford US announced today that it has reached an agreement with several of its lenders to extend US$7.2 billion in loan and credit payments by two more years while also indicating that it intends to pay off US$1.9 billion of its existing US$10.7 billion line of credit.

Additionally other lenders, which hold US$724 million of Ford debt, agreed to create a new term loan that will come due on December 15, 2013, bringing the total debt restructured, or extended to US$7.9 billion.

“We are very pleased with the results of the amendment, extension to our revolving credit facility and new term loan,” Ford US Vice President and Treasurer, Mr Neil Schloss, said. “We appreciate the support of our banking partners.”

Ford’s lenders also lowered the total amount of possible credit available to Ford by as much as 25 per cent after the move.

with Leftlanenews


 
  • topdog

    Why didnt ford just wipe out all of its dept like gmh did

    • Lion

      RESPONSABILITY!

    • Dlr1

      and what of their shareholders? Im sure they would love to get zero return on their investment and have their shares effectively handed over to the US government. Ford didnot accept any bail out money either, unlike GM and Chrysler.

      • Bob

        Check the Price of Ford shares over the last 6 months (and indeed 2 years) to see why they didn’t…

        They’re at their highest in 2 years and have quadrupled in 6 months, after dropping to an all time low.

  • Crummydore

    Good to hear they are doing better financially than the other two.

    Mind you, I am amazed they are considering they sell cars like the one pictured above…. what is it with big ass ugly grilles!!??

    Having said that, Acura have released that cross over with the grille from hell as well, must be a Seppo thing.

    • Lion

      Seppo thing? Big ass grill?
      You know what they say about “fat bottom girls”.

      • Car fanatic

        yes they take up more room on a plane than normal girls!

    • Martin

      I know I’m in the minority, but I really much prefer the designs of the American Fords over the rubbish we get here.

      • Bob

        Definintely a small minority then

      • filippo

        I think the failure of the AU Falcon showed Ford Aus (the hard way) that most Australians look more towards Europe than America when it comes to car design.

      • Evolution

        I stand to be corrected here, but I believe the monumentally stupid people (American’s) that styled the Taurus – a hopelessly ugly car that failed dismally here in Aus, are the very same genius’ that penned the AU Falcon.

        • MJ

          Yep, exactly! Even the small Fiat Punto looks good from the front. And the $2500 Tata Nano looks good from the back…

          It doesnt cost much to hire a good designer these days.

        • poohbear

          You mean as opposed to the monumentally stupid people who imported the hopelessly ugly Taurus to sell against the equally hopelessly ugly Falcon

    • Matt

      Personally I’m not a big fan of that grill but Ford US have been selling a lot of Fusions despite it.

      The US Focus has a similar whopping big shiny grill that is twice as many hits with the ugly stick

  • http://carz.com/ Carz

    Business comes with lots of responsibility. It’s definitely a good thing Ford did not accept bail out money…I just hope they can overcome this fast…

  • Ezz

    What you lot deemed to be ugly design at the time now appears to be the norm for most manufacturers these days. Mercedes Benz are one of the biggest offenders, if you want to call it offensive, that is.

  • Ezz

    I have been hoping Ford can get through this, unassisted. At the moment it is not a fair market in Nth America with GM having the inside running now that they are govt owned.

    • Rhubarb

      ‘inside running?’