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Ford Motor to repay $4B more in debt

By AP

DETROIT –

Ford Motor Co. says it's making another $4 billion payment on its huge debt.

The company will pay $3.8 billion in cash to a United Auto Workers trust fund that pays retiree health care bills.

It also will pay $255 million in dividends on preferred securities that had been deferred as the automaker worked its way through financial troubles.

Ford says the payments are a sign of confidence that its restructuring plans are working.

The company says the actions will reduce its debt to around $27 billion. It had $34 billion in debt on March 31.

The automaker borrowed more than $23 billion to avoid bankruptcy and make it through the recession. But recently it has recorded sales gains and four straight quarterly profits.

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