Troubled Boeing signals it may raise up to $25 billion to shore up finances
Boeing is moving toward raising up to $25 billion to shore up its troubled financial position
SEATTLE — Boeing signaled Tuesday that it could raise up to $25 billion in new stock or debt to shore up its balance sheet after years of heavy losses.
The company said in back-to-back regulatory filings that it could raise the cash over the next three years. It also entered into a new borrowing agreement with lenders to provide short-term protection against a cash crunch. It also entered into a new $10 billion credit agreement with lenders to provide short-term protection against a cash crunch.
Boeing hasn't earned an annual profit since 2018, losing more than $25 billion since, after two 737 Max jets crashed, killing 346 people. Its finances are under new pressure as a strike by workers who build most of its airline jets factory goes into its second month. The strike is cutting into cash, which Boeing receives when it delivers new planes to buyers.
The strike is also getting the attention of the Biden administration. Julie Su, the acting labor secretary, visited Seattle and met with the union and Boeing on Monday, according to the International Association of Machinists and Aerospace Workers.
Boeing workers packed a union hall for raucous rally Tuesday that was intended to show solidarity among strikers.
“We could talk about solidarity, but when you see it, it definitely lifts you up,” said Sergio Lombardo, who has worked at Boeing for 14 years.
Jeff Cook, a quality inspector with 28 years at Boeing, said the rally sends a message to Boeing's corporate officials «that we're not just going to lie down. We have been lying down for them for 16 years, and it’s just not going to fly anymore.”
Boeing has burned through more than
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