The Globe and Mail reports in its Wednesday edition that Boeing on Tuesday announced steps to improve its financial position as costs mounted and a strike by its largest union entered its second month.
A New York Times dispatch to The Globe says that in two regulatory filings, the company said it could raise as much as $25-billion by selling debt or stock over the next three years and that it had entered into a $10-billion credit agreement with a group of banks, which it has not yet drawn on (all figures U.S.).
"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement. The banks are BofA Securities, Citigroup, Goldman Sachs Lending Partners and JPMorgan.
The moves come days after Boeing revealed about $5-billion in new costs and announced a restructuring that included plans to cut 17,000 jobs, or 10 per cent of its work force.
The strike, which began a month ago, is costing Boeing tens of millions of dollars a day. Most of the workers who walked out are involved in production of commercial airplanes, bringing much of that work to a virtual halt, though one major airplane, the 787 Dreamliner, is manufactured at a non-union factory in South Carolina.
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