Ford Motor Co said on Friday it had won approval to defer some quarterly payments due on its U.S. Energy Department retooling loan but added it will repay the loan on time by June 2022.
31 Jul 2020 09:45PM
(Updated: 31 Jul 2020 10:00PM)
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REUTERS: Ford Motor Co said on Friday it had won approval to defer some quarterly payments due on its U.S. Energy Department retooling loan, but added it will repay the loan on time by June 2022.
In September 2009, Ford was awarded a US$5.9 billion low-cost government loan, a key source of liquidity in the aftermath of the financial crisis.
The second-largest U.S. automaker said its loan was modified in June to reduce quarterly principal payments from US$148 million to US$37 million. Ford said it has US$1.26 billion of remaining principal left on the loan.
Ford said "with COVID-19 related economic uncertainty remaining, we believe that is worthwhile to further strengthen our balance sheet and increase liquidity to optimize our financial flexibility." The company noted that if it opts to pay a dividend, repurchase shares above a certain threshold, or provide security to other leRead More – Source