Posted on 10/16/2024 9:19:36 AM PDT by delta7
Cash-starved Boeing, contending with massive financial losses from a crippling strike and years of operational and safety problems, is turning to major banks and Wall Street to raise tens of billions of dollars in cash.
In a regulatory filing early Tuesday, the company announced plans to borrow $10 billion from a consortium of banks. It also separately announced plans to raise $25 billion by selling stock and debt. The $10 billion borrowing plans would be included in the $25 billion that Boeing filed to raise.
The company’s debt surged in the last six years as Boeing reported core operating losses of more than $33 billion. Its commercial airplane production has ground to a near halt by a month-long strike by 33,000 members of the International Association of Machinists.
Talks between Boeing and IAM broke down last week with no new negotiations planned. On Friday, Boeing’s new CEO Kelly Ortberg announced plans to cut 10% of its worldwide staff of 171,000 workers.
Boeing’s credit rating has plunged to the lowest investment-grade level – just above “junk bond” status – and major credit rating agencies have warned Boeing is in danger of being downgraded to junk. That would raise its cost of borrowing. Boeing’s long-term debt has climbed to $53 billion at the end of June from $10.7 billion at the end of March 2019, when a second fatal crash of the 737 Max led to a 20-month grounding of that plane, the company’s best-selling aircraft.
Escalating crises
Over the last six years, Boeing has been buffeted by one problem after another, ranging from embarrassing to tragic. Two 737 Max crashes killed 346 people, a tragedy for which the company agreed to plead guilty to deceiving the Federal Aviation Administration during the certification process for the plane….
(Excerpt) Read more at lite.cnn.com ...
Ask me how I know? Friends and family with close ties to Boeing….AND a huge, well known aerospace company I do contract work has announced certain “ parts” are now unavailable, product line in jeopardy.
How’s them reverse Sanctions working out, Joe?
Wait to see what happens if the American public is stupid enough to vote for Harris or let the election be rigged (which it's obvious they are trying to do). Outsmarting a drunk/high low grade moron will be even easier.
first they came for Boeing.
Well, there’s always bankruptcy. If one remembers Eastern Airlines, it was the Machinists Union who broke them. Whenever I see a sign in a union demonstration that says “People over Profits” I know those members don’t have a clue about business. If unions were so great they would start competing businesses and then they would have all the profits. Union members would be much better off if they paid attention to what’s going on with their employer’s business and less time listening to the bs the union leadership puts out.
Now I know how it must have felt being a Roman citizen and watching Rome fall.
There’s at least the possibility that key American businesses are being targeted for takedown. Watched it happen in 2008 - called it “financial terrorism.” It’s a thing.
And the moronic labor union represented employees that drove Boeing into the ground chose this moment to go on strike.
On a positive note, Boeing made 3.8 out of 5 stars for their DEI program. Just a little more and they will be bankrupt.
Live by the federal trough die by the federal trough.
We should have fed ownership of Boeing soon enough.
I saw this great reel yesterday where an airbus captain set his phone down to get coffee then adjusted his seat forward and his jammed phone put the plane into a dive slamming crew against the ceiling.
The copilot crawled. Along the ceiling to reach the copilot controls.
The airbus avionics took over and recovered the aircraft!
The Roman government and ruling class were as evil and useless as our own and I am certain many Romans didn't regret it when Rome fell. The city of Rome had turned into a monstrous parasite filled with aristocrats of the worst variety.
“ Now I know how it must have felt being a Roman citizen and watching Rome fall.”
We are watching the US fall in real time.
America’s Socialist Labor Unions: Destroying America from within
“ And the moronic labor union represented employees that drove Boeing into the ground chose this moment to go on strike.”
Biden and Harris own this. It wasn’t a coincidence.
If I had money (which I don’t), I would put a good chunk into buying put options for (i.e., shorting) Boeing.
(Obligatory note: this is not investment advice. I am not qualified or licensed to give such. Just what I would do.)
While the Biden Administration squanders America's weapons stockpiles in Ukraine and shooting down crude archaic Houthi, Hamas and Hezbollah missiles and $40,000 drones with now irreplaceable due lack of components 3 million plus dollar missile interceptors, million dollar plus cruise missiles, Sidewinder and AMRAAM air to air missiles, the Chinese, the North Koreans and Iranians are making provocative moves that it's not obvious that our depleted, stretched and increasingly less combat effective military have the resources to counter
If the American people were aware of just how much of our high tech weaponry these loser int he White House have blown through completely unnecessarily they would be shocked and frightened.
It's for certain that it will take 5-10 years to rebuild out inventory and that's assuming that our 35 trillion in debt government can afford to replace them and that our devastated and off shored industrial base we can obtain or supply the necessary parts and raw materials to build them.
That's not going to help in the current conflicts we are currently fighting or have brewing
The morons in Washington have sent all of our older weapons to Ukraine and now they are sending our best front line systems to Ukraine to try to delay the lost cause in Ukraine from collapsing before the elections.
And all the while American voters dither over Abortion, giving free gender surgery to 9 year old trannies in grade schools and Haitians eating cats and dogs in Springfield while our enemies are plotting and maneuvering to give Americans a lot of very late term abortions.
UNIONS NEVER HAVE UNDERSTOOD HOW “BUSINESS” WORKS.
ALL THEY SEE IS A NEVER EMPTY PIGGY BANK.
Boeing is totally at fault for becoming a so so company in hiring, designing and engineering. Once upon a time the best of the best and now look where they are.
They may very well declare bankruptcy and have to start over, if they can.
Jeez, instead of borrowing tens of billions of dollars can’t they simply double down on their DEI priority? /sarc
They will get a bailout so no worries for Boeing.
Sounds like we are in the same industry. I did contract design work for a big aircraft manufacturer. They created an entire division for the aa hires and DEI clown car to keep them out of the actual work but used them for the government contracts and basically models for the advertising literature. You know the one. The smart looking black woman pointing at something on a computer monitor while the other people stood around in amazement. I tried to venture out to make certified parts in my little shop but good lord the overhead was insane just for a part or two a month.
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