Ford Cuts Debt at Discount Causing Substantial Credit Rating Drop


- April 6, 2009

Ford and Ford Cred­it have not request­ed a gov­ern­ment bailout, but they con­tin­ue to restruc­ture debt, reduce labor costs and right-size pro­duc­tion to dwin­dling demand. A recent deci­sion to spend cash and stock to reduce $9.9B of $25.8B debt was done at the expense of investors and con­sid­ered dis­tressed exchanges which are tan­ta­mount to defaults.

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