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Business Briefing / Autos

Ford offers cash, stock to cut debt

March 05, 2009|Times Wire Reports

Ford Motor Co. says it will eliminate up to $10.4 billion of its debt by offering debt holders cash and stock instead as the automaker continues to restructure amid a severe industrywide sales downturn.

The Dearborn, Mich., automaker and its financial arm are putting up $2.2 billion in cash and about 500 million shares of stock to entice holders of bonds and secured-term debt.

The company said that it was restructuring the debt to reduce costs and remain competitive, and that it still did not intend to seek government loans.

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