Jump to content





Sign in to follow this  
probowler

Report: Ford gets 1-year extension on billions in loans

Recommended Posts

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

Share this post


Link to post
Share on other sites

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.....

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
Posted (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 by Harley Lover

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×