Ford to pay $4 bil­lion, halv­ing debt owed to union health fund

Austin American-Statesman - - BUSINESS & PERSONAL FINANCE -

Ford Mo­tor Co., the only Detroit au­tomaker to avoid bank­ruptcy pro­tec­tion, said it will re­duce its debt by an­other $4 bil­lion as it con­tin­ues to show signs of fi­nan­cial strength.

The Dear­born, Mich., au­tomaker will pay $3.8 bil­lion in cash to a United Auto Work­ers trust fund that pays re­tiree health care bills, and it will pay out $255 mil­lion in div­i­dends on pre­ferred se­cu­ri­ties that had been de­ferred as the au­tomaker worked its way through fi­nan­cial trou­bles. Af­ter the pay­ment, Ford will owe the UAW trust about $3.6 bil­lion.

The au­tomaker said the ac­tions, com­bined with a $3 bil­lion debt pay­ment in April, will re­duce its to­tal debt to about $27 bil­lion from $34 bil­lion at the end of the first quar­ter.

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