Boeing’s financial crisis is deepening as it faces significant cash shortages due to a prolonged strike and years of safety and operational issues. According to a report by Chris Isidore for CNN, Boeing is seeking to raise tens of billions of dollars from major banks and Wall Street.
The company plans to borrow $10 billion from a consortium of banks and raise an additional $25 billion through stock and debt sales, with the borrowing being part of this larger sum. Boeing’s core operating losses have exceeded $33 billion in the past six years, and production has nearly halted due to a month-long strike involving 33,000 members of the International Association of Machinists.
Talks between Boeing and the union have stalled, and no further negotiations are planned. Boeing’s credit rating has fallen to just above “junk bond” status, raising concerns about further downgrades. The company’s long-term debt has skyrocketed to $53 billion following safety issues with the 737 Max aircraft, further straining its finances.
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https://www.cnn.com/2024/10/15/investing/boeing-cash-crisis
