Ford Motor Co, shares rose Monday to 22 percent after completed its debt restructuring of $9.9 billion or 38 Percent, according to the reports.
As the ailing company struggles last year with recorded $14.7 billion lost said, it has able to resist US government aid by using $2.4 billion of its own cash along with 468 million shares of its common stock to complete its debt restructuring.
It has also lowered its annual interest expense by more than $500 million per year to save.
The successful debt restructuring, together with previously announced agreements with the United Auto Workers, will substantially strengthen Ford's balance sheet, the auto maker said.
“Ford is taking another step toward creating an exciting, viable enterprise, said Ford President and CEO Alan Mulally.
The move is part of its agreement with the UAW on slashing labors, encouraging early retirement and reworking of the funding of the healthcare trust in an effort to raise finances during this tough economic time.
But Rating Company Fitch said the reduction in unsecured debt decreases the company's interest costs at the price of a moderate amount of liquidity ($2.4 billion). Liquidity, however, remains a clear concern over the next 18 months.
Ford will remain under severe operating stress through at least 2009 due to continued growth in unemployment, weak consumer confidence and the impact of the credit crisis on consumers and the capital markets, Fitch said.
Ford rose 49 cents or 15 percent to $3.74 at 12:09 p.m. in New York Stock Exchange trading.