Ford announced today that it has reached agreement with several of its lenders that will extend $7.2 billion in loan and credit payments by two years. Ford also said that it intends to pay off $1.9 billion of its existing $10.7 billion line of credit.
In addition to the lenders holding the $7.2 billion in debt that extended payments by two years, other lenders which hold $724 million of Ford debt agreed to create a new term loan that will come due on December 15, 2013.
This brings the total debt restructured, or extended to $7.9 billion.
Ford’s vice president and treasurer, Neil Schloss, said, “We are very pleased with the results of the amendment, extension to our revolving credit facility and new term loan.” Schloss also said, “We appreciate the support of our banking partners.”
Ford said that the lenders that agreed to extend the payments also lowered the total amount of possible credit available to Ford by as much as 25 percent.
Lenders holding a total of $886 million of Ford’s total debt declined to give any extension on the existing payment due date.
