IFS to Manage Ford Retiree Health Trust Assets

January 19, 2010 (PLANSPONSOR.com) – Independent Fiduciary Services (IFS) said in a news release that it has been hired by the UAW Retiree Medical Benefits Trust to manage Ford Motor Company securities.

IFS said Ford recently contributed and may contribute more securities to the trust. These Ford securities, along with other trust assets, are expected to fund health insurance and related benefits for eligible Ford retirees, the company said. The securities were part of a settlement agreement among Ford, the United Auto Workers (UAW), and a class of current or former UAW-represented employees. 

According to IFS, the Ford securities consist of:

  • Two promissory notes, one in the principal amount of over $6.7 billion, and the other in the principal amount of over $6.5 billion.  Payments on the first note must be made in cash, but on the second note, may be made in cash, shares of Ford common stock, or a combination.
  • Warrants to acquire over 362 million shares of Ford common stock at a strike price of $9.20, expiring on January 1, 2013.

IFS said it hired Sutter Securities as its valuation firm and financial adviser, and Proskauer Rose LLP as its legal counsel for the Ford matter.

More information is at www.independentfiduciary.com.