Airbus Banks Funding Suppliers in Wake of Greensill Collapse
(Bloomberg) -- Airbus SE said its core banks have stepped in to provide vital financing to suppliers following the collapse of Greensill Capital.
Lenders including Societe Generale SA are ensuring that prompt payments continue after the insolvency of the London-based firm, which Airbus says had acted as a broker for short term supply-chain financing.
“This platform is now up and running and no suppliers have been disrupted,” Justin Dubon, a spokesman for the planemaker, said Thursday.
Greensill, which filed for administration on March 8, provided swift access to cash for suppliers across a range of sectors, paying them immediately at a discount and then collecting the original amount later from the purchasing company. Its fall risked cutting off access to financing for aerospace firms that have already seen revenues hit hard by the coronavirus pandemic.
Shockwaves have been felt across British industry and into the political arena following the collapse of Greensill, which came after loans made by the supply-chain finance business were called into question, leading it to be abandoned by key backers.
The future of Liberty Steel is in doubt, threatening thousands of jobs, while former prime minister David Cameron is being investigated over accusations he lobbied the government on behalf of the firm led by Lex Greensill.
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