Volkswagen has told banks supplying a 20 billion euro ($21.1 billion) credit line that it would sell assets if it finds no other way of repaying the one-year loan, two people familiar with the matter said.
Europe's largest carmaker is under pressure to strengthen its finances as it is expected to have to pay out tens of billions of euros to cover fines, lawsuits and vehicle refits after it admitted to cheating U.S. diesel emissions tests and falsifying carbon dioxide emissions.
The biggest corporate scandal in the German company's 78-year history has forced out its long-time CEO, wiped billions of euros off its market value and hammered its bonds, making it much more expensive for the company to borrow through its traditionally-preferred route of the debt market.
Read Article