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Boeing seeks to borrow $10bn or more in 737 MAX crisis

Christian Fernsby |
Boeing is in talks with banks about borrowing $10 billion or more amid rising costs for the US planemaker after two crashes involving its 737 MAX jetliner, a source told Reuters.

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Topics: BOEING   

CNBC first reported the news on Monday, citing sources that Boeing has so far secured at least $6 billion from banks and is talking to other lenders for more contributions.

A source confirmed the talks to Reuters, but it was still not clear how much Boeing would seek to raise and whether it would pursue the selling of new bonds. One key issue for Boeing is flexibility since it is not clear how long the 737 MAX will remain grounded. Boeing declined to comment.

Boeing confirmed on Monday that it temporary halted production of the 737 MAX in Washington State in recent days. The company had said in December it would halt production at some point this month.

“MAX production has now been temporarily suspended inside the 737 factory. The Renton site remains open as our teams focus their work on several quality initiatives,” Boeing said, referring to its facility in Renton, Washington.

Boeing does not get paid until it delivers the planes it manufactures.

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