Sep 16, 2008
Ford says it's assessing possible impact of Lehman bankruptcy on automaker's credit facilities
NEW YORK (Associated Press) - Ford Motor Co. said Tuesday that it is assessing the impact Lehman Brothers Holdings Inc.'s bankruptcy filing may have on the automaker's credit facilities, which include commitments from Lehman subsidiaries.
Ford said in a Securities and Exchange Commission filing that Lehman Commercial Paper Inc. is one of the lenders participating in the automaker's $11.5 billion revolving credit facility. Lehman Commercial Paper's commitment under the Dec. 15, 2006, credit agreement is $890 million, all of which is presently unfunded, Ford said.
In addition, Lehman Brothers Bank FSB provides $238 million of the $16.3 billion of contractually committed liquidity facilities that support Ford Motor Credit Co.'s program to securitize retail auto financing, Ford said. Lehman Brothers Bank's commitment is guaranteed by Lehman Brothers Holdings.
Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection Monday, but its subsidiaries, including Lehman Commercial Paper and Lehman Brothers Bank, were not included in the filing.
"We are presently assessing the impact, if any, that the bankruptcy filing by Lehman will have on Lehman CPI's and Lehman Brothers Bank's commitments," Ford said in the SEC filing.
The revolving credit facility is part of borrowing capacity Ford obtained nearly two years ago to help fund its restructuring and to cover anticipated losses in its automotive operations. As of Dec. 31, $10.9 billion of the $11.5 billion was available for use, according to Ford's latest annual report.
The credit facility and a term loan were secured by liens on assets including U.S. manufacturing plants, certain intellectual property, and Ford's stake in some of its subsidiaries including Ford Motor Credit and Volvo. It was the first time the company had used assets such as plants to secure financing.
Source : http://money.cnn.com/
