Jan 20, 2020

CNBC: Boeing to take $10 billion loan to cover 737 MAX fallout

Workers walking into a 737 factory on Dec. 16. Photo: Stephen Brashear/Getty Images

Boeing is in talks to borrow $10 billion or more, as the company copes with rising compensation claims from two fatal 737 Max crashes in the last two years, CNBC reports.

Why it matters: Analysts believe Boeing's expenditures could amount to more than $15 billion in the first half of 2020, according to the Wall Street Journal.

Details: Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan have committed to contribute to the loan, according to CNBC

What's next: Boeing will report its quarterly earnings on Jan. 29.

Go deeper:

Go deeper

Boeing gets a bailout, but economy still faces trouble

Data: Investing.com; Chart: Axios Visuals

Boeing secured commitments of over $12 billion in financing from more than a dozen banks, CNBC reported Monday, citing unnamed sources.

Why it matters: The bailout will help Boeing maintain a healthier cash position as it deals with the fallout from a mandatory production stoppage of its 737 MAX jet after two crashes that killed hundreds of people.

Go deeperArrowJan 28, 2020

Justice is elusive for Boeing's 346 plane crash victims

Illustration: Aïda Amer/Axios

Boeing is navigating how to handle the $100 million compensation fund it set up for the families of crash victims, even as a pledge by its former CEO to fatten the fund seems uncertain.

Why it matters: Boeing is pulling out all stops to appease Wall Street over the grounding of its 737 MAX, but it is saying little about the issue of restitution for the families of the hundreds who died due to faulty technology onboard its flagship plane.

Boeing lost money in 2019 for the first time in 20 years

A Boeing 777X airplane taking off on Jan. 25.

Boeing said it lost money last year for the first time since 1997, according to its latest quarterly report.

Why it matters: The company is mired in the biggest crisis in its history. Costs stemming from the grounding and production halt of the 737 MAX, its best-selling plane, is weighing on Boeing’s financials.

Keep ReadingArrowJan 29, 2020