Boeing prepares layoff notices for thousands of workers as turmoil deepens
NBCOct 17
Boeing Seeks to Raise $35B Amid Financial Struggles
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Above: Boeing's logo is displayed on the New York Stock Exchange floor during morning trading on Sept. 4, 2024, in New York City. Image copyright: Michael M. Santiago/Staff/Getty Images News via Getty Images
The Facts
Aviation giant Boeing notified regulators on Tuesday of plans to raise up to $35B to shore up the company's finances.
In a regulatory filing, Boeing said it seeks to raise up to $25B through a stock and debt offering and a $10B credit agreement with major lenders. The company hasn't yet drawn upon the $10B credit facility or its existing credit revolver.
The Spin
Narrative A
Job losses, strikes, and the door panel incident have undoubtedly made it a tumultuous year for Boeing. However, these two moves to shore up their finances should be sufficient to put them in the clear for the next three years. In the meantime, they can tend to internal issues and once again turn a profit.
Narrative B
While these cash-raising measures may be enough to save Boeing's credit rating from slipping anytime soon, that doesn't mean the company is any less likely to buckle under the pressure of this weight. It is facing significant structural issues and, unless it gets its act together quickly, it could soon face bankruptcy.
