Comments on: Ford Makes Offer On $10.4b In Long-Term Debt

By: dpeppers

dpeppers — Fri, 06 Mar 2009 11:53:42 +0000

runfromcheney

They are doing as they were told. They met with the “Task Force”. They were told to get ahead of the game, because they are running out of money. They are following the pattern of assistance laid out by the task force. If you can’t see the coincidence of the two, then I hope this has helped. Ford is in the same bucket with the rest of them foriegn and domestic. This last man standing crap isn’t going ot happen. We are at a cliff staring at the abyss when it comes to cars sales. there is no company on earth that came adjust quickly enough. Honda may be the shining light (small enough to be flexible enough).

By: Runfromcheney

Runfromcheney — Thu, 05 Mar 2009 23:56:39 +0000

windswords: I didn’t think it was a “genius” move, but it is a good example of Ford being ahead of the game and actually trying. GM AFAIK didn’t start trying to convert debt into equity until they were running on government funds.

So it is just an example of how Ford is trying to restructure instead of just doing nothing then expecting us to keep them alive just because they employ a lot of people. Like some OTHER automakers.

By: windswords

windswords — Thu, 05 Mar 2009 21:39:38 +0000

Not true. In a BR, there is a pecking order of who gets paid. Secured debt holders are at or near the head of the line. Stockholders are dead last. Even in C7 liquidation, the assests are sold off to pay the debt holders in the previously mentioned pecking order, often for pennies on the dollar. But it’s still better than zero which is what stockholders get. With Ford bleeding cash why would you exchange your secured debt for unsecored stock?

By: wsn

wsn — Thu, 05 Mar 2009 18:51:18 +0000

windsword, in a C11/C7, your debt will be zero too even if they are secured (before C11/C7, Ford will draw LOC, and government is placed at first for savage value).

By: windswords

windswords — Thu, 05 Mar 2009 18:06:22 +0000

This is no genius move by Ford. They are just trying to do the same thing that GM and GMAC are trying to do. Yes, they are sweetening the deal a little. But if you exchange your secured debt for unsecured stock you get nothing in a C11, let alone a C7. Would you do that? I wouldn’t.

By: RetardedSparks

RetardedSparks — Thu, 05 Mar 2009 17:11:54 +0000

umterp85: As far as I know, I did. Thanks.

By: Robert Farago

Robert Farago — Thu, 05 Mar 2009 16:14:35 +0000

schadenfred :

Doh! Text amendeded.

By: jcoll

jcoll — Thu, 05 Mar 2009 15:59:19 +0000

I think you should either delete an r from “terrm”, or else add a bunch more.

By: umterp85

umterp85 — Thu, 05 Mar 2009 15:53:08 +0000

ReatardedSparks….if you came up with that FORD acronym descriptor…kudos…very creative !!

By: dwford

dwford — Thu, 05 Mar 2009 15:46:11 +0000

SegwayCop:

Would you give up your cushy job at Boeing and forfeit your pension to go help a struggling automaker for peanuts? No. Ford wanted the best, and paid what they had to pay to get him. Many companies do this. Ford’s problems are not Mulally’s fault. He should not have to give up a dime to fix the problems he was hired to solve.

By: RetardedSparks

RetardedSparks — Thu, 05 Mar 2009 14:50:49 +0000

FORD = Final One Remaining in Detroit

By: SegwayCop

SegwayCop — Thu, 05 Mar 2009 14:15:15 +0000

Probably a dead thread but two things bother me about Mulally.
1. He was very quick to secure his gold-plated pension upon arrival from Boeing. Could it be some projections he held related to this: http://www.chicagobusiness.com/cgi-bin/article.pl?articleId=31402
Do Boeing management draw from the same pension pool? Is this similar to GM’s pension “borrowing” and who is involved?

2. The Boeing Dreamliner was reported to be delayed 2 years (union strike, whistleblower, etc). Wasn’t this program touted on his resume in 72 font for all of us? Did he leave it for someone else to clean up? What gives?

By: dwford

dwford — Thu, 05 Mar 2009 13:18:05 +0000

Kurt:

Ford is trying to convert their unsecured debt. If Ford goes C11, the unsecured creditors will get screwed, because most of Ford’s debt is secured by assets already, so there won’t be any money left. The deal Ford is offering is actually a premium over what the debt is trading for on the market, so if a debt holder wants out, they can make a little extra with Ford vs. selling the debt on the open market.

By: Rod Panhard

Rod Panhard — Thu, 05 Mar 2009 13:06:21 +0000

Three cheers for Ford! Just wait till the mirrors get smashed and the smoke clears, they’ll still be standing. And as the “Last Remaining ‘American’ Car Company,” their cars will sell like H-D logo’d do-rags in August at Sturgis, SD.

By: dpeppers

dpeppers — Thu, 05 Mar 2009 10:51:06 +0000

Ford was just smart enough to borrow every dime they could before the bust. They are but 6 months behind the other two and if timing goes bad they will ask for money also. Say what you will, letting Lehman Brothers fail and the credit crunch has mortally wound the entire automotive industry. You all stand around here and armchair quarterback, but if the SAAR does not increase soon you will see a world of hurt across the industry. The suppliers are barely holding on, even the almighty Toyota is backdooring some cash from the guberment of Japan.

By: Kurt.

Kurt. — Thu, 05 Mar 2009 10:42:35 +0000

Do you think this will fly? That’s currently $285 (round) for evey $1000. what investor would stoop to this? Stock price would have to raise back up to $8.5 just to break even (but you don’t have to wait for 2036 – if Ford is even around).

By: hazard

hazard — Thu, 05 Mar 2009 10:39:34 +0000

compy386 :
March 4th, 2009 at 8:53 pm

Unfortunately for Ford, Ford Credit has about 126 billion in debt of which about 70 billion is securitized.

Isn’t Ford Credit (or Ford Financial?) a separate company legally, like GMAC from GM? Can’t Ford, if necessary, let its financial subsidiary simply go bankrupt, but survive otherwise?

By: Kurt.

Kurt. — Thu, 05 Mar 2009 10:36:37 +0000

Terrm? Is is cold where you are Mr. Niedermeyer?

By: MBella

MBella — Thu, 05 Mar 2009 06:33:50 +0000

I am recently finding it funny how Ford’s turnaround plan seems to be working. Back when they hired Mulally and mortgaged everything including the logo, everyone assumed Ford was going to go first. (I was one of the people on this bandwagon) The general thought was, “What is this aircraft guy going to do with a car company. He doesn’t know the car industry.” It seems like all it takes is a little common sense, and you can get far.

What I’ve heard from people that talked to Mulally directly, is that his changes are uphill battles against the board. It seems like he is getting through, and with a bit of success it has to be getting easier.

By: maniceightball

maniceightball — Thu, 05 Mar 2009 06:33:01 +0000

You really do get the sense that they’re honestly trying. It’s refreshing.

By: 928sport

928sport — Thu, 05 Mar 2009 06:30:13 +0000

For the 25 to 30 mill a year Mulally gets he better walk on water,Time will tell.

By: BDB

BDB — Thu, 05 Mar 2009 03:54:51 +0000

Runfromcheney-

LOL your scoreboard is the truth.

I didn’t realize it until the other day when our car buying history was questioned on this site, but it seems I’m a Ford guy.

The only non-Ford car I’ve owned is a Miata, and even then Mazda has a special relationship with Ford. So I’m happy to see them in the strongest position of the D-3.

By: King Bojack

King Bojack — Thu, 05 Mar 2009 03:15:48 +0000

Remember how everyone shit their pants in fear when Ford hired Mulally?

By: Runfromcheney

Runfromcheney — Thu, 05 Mar 2009 02:52:12 +0000

BDB: I pointed that out yesterday. I mentioned that the reason why everyone believes that Ford will be the last one standing is because they will be ready with a fresh product line when the economy picks up, while GM and Chrysler will be trotting out the same outdated, uncompetitive models, and will be caught with their pants down, again.

Current score:
Ford: 112
GM:0
Chrysler:-5

By: BDB

BDB — Thu, 05 Mar 2009 02:45:50 +0000

guyincognito-

A’int that the truth?