Monday April 6, 03:08 PM
US automaker Ford cuts debt by $9.9 bln
NEW YORK (AFP) - US automaker Ford said Monday it had completed a debt restructuring, slashing 9.9 billion dollars from a debt pile of 25.8 billion dollars at the end of 2008.
The debt restructuring is expected to lower annual interest expense by more than 500 million dollars, Ford Motor Company said in a statement.
"This successful debt restructuring, together with previously announced agreements with the United Auto Workers (union), will substantially strengthen Ford's balance sheet," the company said.
Unlike its US rivals, Ford, the number-two US automaker after General Motors (NYSE: GM - news) , has not sought government aid to cope with collapsing auto sales as the recession bites.
Rivals GM and privately held Chrysler are teetering on the brink of bankruptcy despite a multibillion-dollar government rescue.
Last week President Barack Obama's administration warned that neither had met strict conditions laid out in a 17.4-billion-dollar government bailout agreed late last year.
The two companies are now seeking an additional 21.6 billion dollars in public aid, which the government says will only be forthcoming if they submit more realistic plans for their survival.
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