Ford makes the cut

US carmaker Ford has seen its shares rise 16 percent in New York, after saying it had cut $9.9 billion from its $25.8 billion debt. ┬áThe 38 percent debt reduction will reduce Ford's interest payments by more than $500 million a year. ┬á It is said the cut, along with previous agreements with the United Auto Workers union, will "substantially strengthen Ford's balance sheet." ┬á "As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth," said Ford chief executive Alan Mulally in a statement. ┬á "Clearly it is a strong positive for the company, the ability to reduce liabilities and the interest burden," Fitch Ratings managing director Mark Oline said. ┬á Meanwhile General Motors is speeding up preparations for a possible bankruptcy filing at the end of the month, even as directors scout for deeper savings this week to avoid that outcome, and Crysler has 30 days to reach an agreement with Fiat and other stakeholders in an attempt to create a tax-payer funded international partnership to keep them from filing Chapter 11. ┬á Ford is the only one of the big three US carmakers that has not taken government bail-out money to allow its operations to continue.┬á "At this point the interest of the bondholders and equity holders are pretty much aligned,ÔÇØ said Oline. ÔÇ£Both want Ford to survive the current environment."