Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
"The more worrisome part (to me) is that the Company has pledged *everything* including the brands and intellectual property to borrow a bunch of extra money."

I don't think it was extra money. It was a move that in better years would've been made to put out bonds. If Ford turns around, won't the bond rating go up, new bonds be written to cover this debt with the writers floating the bonds and getting the business? Not to be too simplistic, but with the bond ratings pushed down - no way to get the cash this year. If Ford is successful in a turn around, this debt will not be a concern. If Ford isn't, then this debt is just another complication bankruptcy court.

T. Allan
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement