Ford To Cut $10B In Debt With Cash, Equity Offer

DEARBORN, Mich. (AP) — Ford Motor Co. says it will eliminate up to $10.4 billion of its debt by offering debtholders cash and stock instead, as the automaker continues to restructure amid a severe automotive sales downturn.

The Dearborn, Mich., automaker and its financial arm are putting up $2.2 billion in cash and about 500 million shares of stock to entice holders of bonds and secured-term debt.

The company said Wednesday it is restructuring the debt to reduce its costs and remain competitive, and it still does not intend to seek government loans.

General Motors Corp. and Chrysler LLC also are trying to swap debt for equity as a requirement of the $17.4 billion in government loans they have received.