Boeing Is In Talks To Borrow US$10 Billion Or More As 737 MAX Crisis Wears On...
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January 20, 2020 - by Leslie Josephs for cnbc.com
Fliegerfaust Note: Could Boeing spare $1 or $2 billion and acquire 50% of Bombardier inc? Wait.... Airbus got 50% of the CSeries for $0.01, why would 50% of Bombardier be worth that much? (sarcasm but still...)
- Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes.
- Boeing is suspending production of the troubled planes this month as the grounding stretches into its 11th month, a move that has rippled through the supply chain and already cost thousands of jobs.
- Banks that have already committed to contribute to the loan include Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan, people familiar with the matter said.
Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes.
The company has secured at least $6 billion from banks so far, the people said, and is talking to other lenders for more contributions. The total amount could rise if there is additional demand from banks, one person familiar with the matter said.
Liquidity isn't an immediate concern, analysts have said, but the new debt shows Boeing is shoring up its finances amid the cash-sapping fallout of the two crashes — one in Indonesia in October 2018 and another in Ethiopia in March last year — that killed all 346 people aboard the two flights.
The amount Boeing is seeking to borrow is...