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General Motors is setting up a $4.5 billion safety net to avoid supply chain disruptions

The automaker will issue formal payment promises to a third-party firm, which will advance funds to select suppliers on GM's behalf

General Motors $GM entered into a financing arrangement on August 7 with supply-chain management firm Procura Auto Parts LLC, under which Procura will prepay certain GM suppliers so they can acquire and hold inventory set aside for the automaker, GM said in a regulatory filing Tuesday.

The arrangement carries a maximum capacity of $4.5 billion. Procura will draw on financing from a bank syndicate that includes JPMorgan $JPM Chase Bank, N.A. and Banco Santander, S.A.; GM will back that financing by issuing irrevocable payment undertakings, or........

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