Boeing seeks to borrow $10 billion or more as 737 Max crisis wears on

Business

The tails of Boeing 737 MAX aircraft are seen parked at Boeing facilities at the Grant County International Airport in Moses Lake, Washington, September 16, 2019.

Lindsey Wasson | Reuters

Boeing is talking to banks about borrowing $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes.

The company has secured at least $6 billion from banks so far, the people said, and is talking to other lenders for more contributions.

Boeing has been grappling with the cash-sapping fallout of the two crashes — one in Indonesia in October 2018 and another in Ethiopia in March last year — that killed all 346 people aboard the two flights.

The company is suspending production of the planes this month as the grounding stretches into its 11th month. The return of the jets has faced several hurdles, including a new software issue disclosed by the company last week.

Boeing declined to comment.

This story is developing. Please check back for updates.

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