On Wednesday, March 4, the Ford Motor Co. announced the negotiation of a series of successful concessions for its debt holders that, through company stock swamps and cash payouts, will reduce the company's debt by as much as $10.4 billion.

The negotiated terms are consistent with the requirements the federal government has placed on General Motors and Chrysler LLC, although Ford had not asked for federal assistance, insisting it has sufficient cash to remain viable. The company would, however, like to have access to a $9 billion line of credit from the government as a hedge against a further drop in industry sales after brutal January and February numbers.

John Casesa, a former Wall Street analyst and a principal of Casesa Shapiro Group LLC was quoted in a story by Automotive News, "Ford is an enormously leveraged company today, so a debt reduction of this size would significantly improve the company's risk profile and reduce its losses by slashing interest expense."

Ford has not posted a profit since 2005 and carried $25.8 billion in automotive debt at the end of 2008. Late in 2006, the company borrowed $23.4 billion, a move that put Ford in a better position to weather the current recession that General Motors or Chrysler.

"The debt restructuring plan we are announcing today is a critical step in Ford's overall transformation," said CEO Alan Mulally in a statement. "We are continuing to work with all of our stakeholders -- including employees, dealers and suppliers -- to secure Ford's future in this difficult economic environment."