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View Full Version : Report: Ford cuts debt by $4B with cold, hard cash


RSS Robot
07-01-2010, 10:41 AM
Filed under: Ford (http://www.autoblog.com/category/ford/)
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Ford (http://autoblog.com/make/ford/) ended the first quarter with a knee-wobbling $34 billion in debt, but the Blue Oval has been making good on its bills in impressive fashion over the past three months. The automaker has paid off $7 billion in loans in the second quarter, saving the company $470 million in annual interest payments.

The latest debt reduction came when the company paid $860 million in cash to its VEBA retirement health care fund that was due. With its pocketbook already open, Ford doled out another $2.9 billion to complete its VEBA obligation. Ford could have used stock to pay off the fund, but the company instead reaped a two-percent discount for shelling out cold, hard cash instead. Ford paid down another $250 million in securities to bring the total dollar figure to $4 billion. Ford now has $27 billion in outstanding debt and the company expects to be solidly profitable for 2010.

[Source: Detroit News (http://detnews.com/article/20100630/AUTO01/6300393/Ford-pays-off-$4B-in-debt-with-cash)]Report: Ford cuts debt by $4B with cold, hard cash (http://www.autoblog.com/2010/07/01/report-ford-cuts-debt-by-4b-with-cold-hard-cash/) originally appeared on Autoblog (http://www.autoblog.com) on Thu, 01 Jul 2010 09:59:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).


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