Boeing Co. Is looking at raising additional debt to help bolster its resources following the grounding of its 737 Max jetliner, Dow Jones reported.
While Boeing had about $20 billion in available funds at the end of the third quarter, costs stemming from the Max crisis are increasing, the news agency said, citing people familiar with the matter it didn’t identify.
Boeing is halting production of the Max, a model that has yet to gain approval to resume flights after two fatal crashes. While that’s reduced some costs it also means a longer wait for payments for finished planes. The company also faces compensation claims for airlines disrupted by the grounding, as well as from families of the crash victims.
Analysts expect Boeing to raise as much as $5 billion in extra debt to help cover spending that may exceed $15 billion in the first half, Dow Jones said. Funds would help maintain Max production facilities and finished planes, as well as close the $4 billion purchase of an 80% stake in the airliner business of Embraer SA.
More must-read stories from Coins2Day:
—25 ideas that will shape the 2020s
—USPS could privatize as early as next year
—UPS’s $20 billion bet on e-commerce is paying off
—Airbnb copes with a bad trip on the road to a 2020 IPO
—2020 Crystal Ball: Predictions for the economy, politics, technology, etc.
Subscribe to Coins2Day’s Eye on A.I. Newsletter, where artificial intelligence meets industry.