Apparently it was a password protected spreadsheet. Which seems like incredible incompetence of the company to accept code in that format in the first place and to not have demanded the password when the first issue arose.
On the one hand, yes, that's crazy. On the other hand, an argument can be made that company accept proprietary software in binary form all the time, and this is no different ! Still a good laugh from the sidelines...
Without the source, the customer loses the ability to switch software contractors, which is against their procurement rules. Even if you don't have the clout of being huge, not controlling the source for business-critical software is basically putting the supplier's gun up to your own head.
Companies that take binary-only delivery have obviously never hired anyone who could tell them they shouldn't do that.
Always get the source, or write it in-house.