Boeing indicated on Tuesday that it might seek to accumulate as much as $25 billion through new stock or debt offerings to stabilize its financial position following several years of substantial losses.
The company disclosed in consecutive regulatory filings that it plans to obtain this funding within the next three years and may establish a new borrowing arrangement with financial institutions.
Since the beginning of 2019, Boeing has recorded losses exceeding $25 billion, and its financial situation is facing additional strain as a labor strike involving workers who construct the majority of its airline jets nears its second month.
This ongoing strike is impacting the cash flow, as Boeing relies on payments from customers when new aircraft are delivered.
The company reported that it had burned through over $1 billion in cash and concluded September with $10.3 billion in liquid assets and securities.
On Friday, the newly appointed CEO Kelly Ortberg announced plans to reduce the workforce by approximately 10%, resulting in about 17,000 job cuts, while also delaying the introduction of a new version of the widely used 777 airliner.
Production of the current models, including the 777 and the 737 Max—Boeing’s most popular aircraft—has come to a standstill due to the ongoing strike.
Boeing’s recent securities filings were categorized as shelf registrations, which allow a corporation the potential to raise capital without a binding commitment.
Additionally, the firm mentioned that it has secured a $10 billion supplementary credit agreement with several major U.S. banking institutions.
On Tuesday, shares of Boeing Co, headquartered in Arlington, Virginia, experienced a slight increase of less than 1%.
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