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.