Ford transfers $13.2 billion in debt notes for health care trust

Article by Christian A., on August 29, 2010

Ford Motor Co. disclosed that it has moved $13.2 billion in debt notes and cash into a UAW-administered retiree health care trust in order to transfer that liability to the union.

So far, this and other similar transactions have added about $7 billion in debt to the carmaker's balance sheets. Ford also said that included in the asset transfer are a $1.4 billion scheduled payment on a $6.7 billion note and a prepayment of $500 million on that note.

Furthermore, Ford paid $610 million in cash on a separate $6.5 billion note. Ford had also transferred $620 million from a temporary asset account that had been set up previously to fund the new voluntary employees' beneficiary association.

Ford also transferred warrants to purchase 362 million shares of Ford common stock to the VEBA at a price of $9.20.

Notably, with Ford shares closing at upwards of $10, those warrants are in-the-money. This means that the UAW fund could opt to exercise the warrant at any time, according to Ford spokesman Mark Truby.

The last element of the asset transfer was a $3.5 billion internal VEBA fund that had been accumulated through the years.

Topics: ford, united states

If you liked the article, share on:

Comments

Recommended

Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries