probowler Posted July 25, 2020 Share Posted July 25, 2020 Ford has secured some additional breathing room as it tries to navigate the ongoing global financial crisis. The Dearborn automaker has gotten commitments from enough banks for a one-year extension on the bulk of revolving loans totaling about $5.35 billion, according to Reuters, which said JP Morgan was leading the effort. The news service, citing sources close to the transaction, noted that Ford has been trying since early this month to get the maturity extensions on two different three-year credit facilities, one for $3.35 billion and another for $2 billion. Full story Quote Link to comment Share on other sites More sharing options...
J-150 Posted July 25, 2020 Share Posted July 25, 2020 Apparently the banks also watched the Bronco launch. 3 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 26, 2020 Share Posted July 26, 2020 The banks also know that there's nothing to be gained by not offering an extension. It's ducking a problem until after covid uncertainty subsides..... Quote Link to comment Share on other sites More sharing options...
probowler Posted July 26, 2020 Author Share Posted July 26, 2020 Plus imagine the damage if one of these automakers goes out of business. All the lost jobs in sales, maintenance, manufacturing and part supplies.... lost business with ford in the future. That's not to say that businesses shouldn't be allowed to fail... but I have to think there's at least some incentive and moral reasoning for the banks to offer a little leeway to Ford and small businesses and individuals during these extraordinary times. 1 Quote Link to comment Share on other sites More sharing options...
Harley Lover Posted July 26, 2020 Share Posted July 26, 2020 (edited) 10 hours ago, probowler said: That's not to say that businesses shouldn't be allowed to fail... but I have to think there's at least some incentive and moral reasoning for the banks to offer a little leeway to Ford and small businesses and individuals during these extraordinary times. Agree with your sentiment, but accusing a bank of 'moral sentiment' is a non starter - they have none. Edited July 26, 2020 by Harley Lover Quote Link to comment Share on other sites More sharing options...
jpd80 Posted July 26, 2020 Share Posted July 26, 2020 But they do want to be seen as helping in extremely unusual circumstances, a bit of good PR never goes astray with the banksters. Ford still has plenty of cash and equity, it’s just a way of avoiding harsher actions in what could be a temporary situation. Quote Link to comment Share on other sites More sharing options...
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