Ford Motor Co. disclosed that it has moved $13.2 billion in debt notes and cash into a UAW-administered retiree health care trust in order to transfer that liability to the union. So far, this and other similar transactions have added about $7 billion in debt to the carmaker’s balance sheets.
Ford also said that included in the asset transfer are a $1.4 billion scheduled payment on a $6.7 billion note and a prepayment of $500 million on that note. Furthermore, Ford paid $610 million in cash on a separate $6.5 billion note. Ford had also transferred $620 million from a temporary asset account that had been set up previously to fund the new voluntary employees’ beneficiary association.
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