Boeing secures US$10 billion loan amidst workers’ strike
The U.S. manufacturer Boeing announced on Tuesday that it managed to close a credit agreement with a consortium of banks worth 10 billion dollars, after it revealed last Friday that it is going through “difficult times” and anticipated that it will lay off 10% of its global workforce (17,000 workers).
“This credit facility provides additional short-term access to liquidity as we navigate a challenging environment,” the company said in a statement.
Boeing also separately reported Tuesday on a plan to raise $25 billion through equity and debt sales over the next three years that would provide “flexibility for the company as it pursues a variety of capital options.”
→ Boeing delivers 33 jets in September
The company is seeking new sources of financing, as it has $11.5 billion in debt maturing through 2026 and is facing serious liquidity problems after more than 30,000 employees went on strike in September, paralyzing production of the 737 MAX, its best-selling commercial aircraft.
The shutdown is costing the company more than $1 billion a month, according to an estimate released before Boeing announced its job cuts.
The company had also been subject to new production limits on MAX aircraft by U.S. regulators after a cockpit panel on these aircraft blew out in mid-flight in January.
Boeing has posted operating cash flow losses of more than $7 billion in the first half of 2024 and its debt stands at about $60 billion.
Boeing’s new CEO, Kelly Ortberg, will hold his first quarterly meeting with investors on October 23 since becoming CEO of the company in August.
With information from EFE
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