Ford Motor Company recently "borrowed" 18 BILLION dollars for their restructuring "plan". I am sure the interest is over million a month. Who would lend that to them (the Japanese have all our money now, maybe it was them) and who thinks there's not a snow ball's chance they will be able to pay it back?! I want it to work for them since it directly affects my life (my husband is a Ford retiree) but it sure scares me. That's a lot of Mustangs!
2006-11-29 02:29:33 · 4 answers · asked by AKA FrogButt 7 in Business & Finance ➔ Corporations
They borrowed money from a few sources. It is intended to help them restructure. If they restructure properly, then they should make money, and be able to pay back the money they borrowed.
They are also hoping to buy out retirement plans like your husband's. So far they have 38,000 takers.
2006-11-29 02:38:56 · answer #1 · answered by trigam41 4 · 1⤊ 0⤋
Ford has pledged the entire company as collateral for this loan. If they can't pay it back, they'll file chapter 11, the debt will be discharged and the lenders will own the company. Same thing happened with K-Mart, United Airlines, Delta Air. The shareholders in the old company will own worthless stock. The new company (post re-organization) will issue new shares, the majority of which willbe owned by the creditors. Its a no loose gamble for Ford, the corporation. Its a raw deal for current Ford shareholders.
2006-11-29 02:43:31 · answer #2 · answered by davidosterberg1 6 · 1⤊ 0⤋
yeah i know what you mean! i live near the ford plant in st. paul, mn and its closing soon, putting alot of people out of work, and a friend of mine is moving to another state now, because her husband works for the ford plant. Very sad. :(
2006-11-29 02:33:48 · answer #3 · answered by Lisa 3 · 1⤊ 0⤋
The money corporation spend and make are in no way comparable to our pocketbooks. They'll pay it back.
2006-11-29 02:32:06 · answer #4 · answered by donewiththismess 5 · 1⤊ 0⤋