Boeing to Raise $25 Billion to Shore Up Finances

Washington, Oct 15 (AP) Boeing signalled Tuesday that it could raise up to USD 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 and enter into a new borrowing agreement with lenders.

Boeing has lost more than $25 billion since the start of 2019, and 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.

Boeing has burned through more than $1 billion in cash and ended September with $10.3 billion in cash and securities.

On Friday, new CEO Kelly Ortberg said Boeing will cut about 10% of its workforce – around 17,000 jobs – and pushed back the launch of a new model of its large 777 airliner.

Production of current models of the 777 and Boeing's best-selling plane, the 737 Max, have been halted by the strike.

Boeing's securities filings Tuesday are called shelf registrations, which indicate that a company has the ability to raise funds without committing to doing anything.

The company also said that it entered into a $10 billion supplemental credit agreement with several leading US banks.

Shares of The Boeing Co, based in Arlington, Virginia, rose less than 1% Tuesday.