Boeing is seeking to raise up to $25 billion in equity and debt offerings in the market to raise enough money to shore up its balance sheet for the next three years, according to a regulatory filing the company released Tuesday. Boeing also revealed it had reached a credit agreement with a pool of banks to raise $10 billion in the short term.
The moves come in the wake of a strike at its main commercial aircraft plants in Renton and Everett, Washington state.
About 33,000 employees have been on strike since Sept. 13 after rejecting a proposed 25 percent pay raise over the next four years.
Boeing then raised its offer to 30%, but employees refused, which forced the company to withdraw the proposal.
The halt in production of aircraft such as the 737, 767 and 777 has generated around US$ 1 billion in losses per month. In its preliminary report for the 3rd quarter, the company stated that it had lost US$ 5 billion.
Defense and Space division
The problems of the US giant, which has 170,000 employees and announced that it will cut 10% of them, are not limited to the commercial division.
Boeing Defense and Space (BDS) suffered losses with its main programs such as the T-7A training jet, the KC-46A tanker aircraft and the MQ-25 drone.
In addition, the Starliner spacecraft, which was supposed to bring two astronauts to the International Space Station (ISS), had problems and returned to Earth empty.
As a result, the division’s CEO, Ted Colbery, was removed from his position and replaced by Steve Parker.
Boeing shares closed trading up 2.23% on Tuesday.
