Boeing, the struggling aircraft manufacturer, has announced plans to raise up to $25 billion through stock and debt offerings and a $10 billion credit agreement to combat its financial woes amid a production and regulatory crisis. The company is dealing with a decline in production of its popular 737 MAX jet following an inflight door panel incident and a strike by US union workers. Analysts estimate Boeing needs to raise between $10-15 billion to maintain its credit ratings just above junk status. S&P Global and Fitch suggest the stock and debt offerings could help protect Boeing’s investment-grade rating. However, some analysts are skeptical, with concerns over the company’s immediate liquidity needs and its ability to overcome the crisis.
The strike by thousands of US workers is costing Boeing over $1 billion a month, leading to the recent announcement of 17,000 job cuts. Talks between the company and the Machinists Union have not yet resulted in a new contract agreement, with workers demanding better benefits. US Labor representatives are trying to mediate discussions to resolve the deadlock.
In response to the financial challenges and strike, Boeing is looking to secure much-needed funding while navigating an uncertain future. Despite the challenges, the company aims to continue building quality planes and supporting its workforce. The situation remains fluid, with ongoing negotiations and efforts to stabilize Boeing’s financial position and employee relations.
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