Boeing was about to launch its plan to raise more than $15 billion in capital, Reuters reported.
The aircraft maker is approaching a plan to raise about $15 billion through common stock and mandatory convertible bonds as it seeks to shore up finances worsened by the ongoing strike. The new capital would be raised through the sale of stock and convertible preferred shares, the source added.
Machinists last week rejected Boeing’s latest offer to end the strike by a nearly two-to-one vote.
The aerospace giant faced increased regulatory scrutiny, production restrictions and a loss of customer confidence since a 737 MAX aircraft had a door panel ripped off in mid-air in early January.
Boeing has been burning cash all year and last week announced a new quarterly loss of $6 billion. Earlier this month, Boeing said it had entered into a $10 billion credit agreement with major lenders Bank of America, Citibank, Goldman Sachs and JPMorgan.
The three major rating agencies, S&P, Moody’s and Fitch, said they would downgrade Boeing’s ratings to junk if it raised about $11 billion in new non-performing debt maturing by 1 February 2026.
