Aircraft manufacturer Boeing is in talks with banks about borrowing $10 billion, equivalent to SEK 95 billion, or more, to cover higher costs in the wake of the 737 Max crisis, CNBC reports, citing sources.
Boeing has reportedly secured at least $6 billion in loans so far. Earlier in January, Jeffries wrote that it expected the company to increase its debt by $5 billion this quarter.
Boeing's 737 Max is now in its 11th month of being grounded following two crashes that killed a total of 346 people. Production halts have also hit the supply chain and thousands of jobs have been lost.
Last week, Moody's warned that there are many indications that it will be more costly for Boeing to restore confidence and that a period of higher operational and financial risk now awaits, even if the 737 Max is allowed to take off in the relatively near future.
The 737 Max crisis has cost Boeing over $1 billion in revenue, and the company has been forced to take a $5.6 billion pre-tax charge to compensate its customers. However, analysts expect Boeing to be forced to pay even more money to its customers.
Source: di.se
