Boeing wants to borrow $10 billion to survive 737 Max crisis
CNBC reports that Boeing is in talks to borrow at least $10 billion to help it survive its 737 Max crisis.
The company has reportedly secured $6 billion already, and is talking to lenders to increase this figure.
Banks which have already loaned money to Boeing include Citigroup, Wells Fargo, and J.P. Morgan.
According to the report, analysts were not expecting it to borrow as much as $10 billion – with one analyst forecasting a figure of around $5 billion.
Boeing suspended production of the 737 Max earlier this month, over 10 months after the planes were first grounded.
“Recent developments suggest a more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk, even if certification of the Max comes relatively near-term, as expected,” said Jonathan Root, Moody’s lead Boeing analyst.
New software flaw
Boeing recently identified a new software flaw in the 737 Max that could further delay the plane’s return to the skies.
“We are making necessary updates and working with the FAA on submission of this change, and keeping our customers and suppliers informed,” said Boeing.
“Our highest priority is ensuring the 737 Max is safe and meets all regulatory requirements before it returns to service.”
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