From Investing.com: 2024-11-10 03:00:00

Spirit AeroSystems raised concerns about its ability to continue operations, citing “substantial doubt” in its financial report. The company reported significant net losses of $1.5 billion year-to-date and anticipates a cash burn of $450 to $550 million over the next three quarters due to complications with Boeing and Airbus.

Boeing may need to inject capital into Spirit following the disclosure. Bank of America analysts believe Boeing’s acquisition of Spirit may be impacted by the financial challenges. Boeing previously provided $425 million in advance to Spirit for liquidity, with further capital injections potentially on the horizon.

Spirit raised over $24 billion last month and fully drew a $350 million bridge loan established during Boeing’s acquisition agreement. Bank of America maintains a Neutral rating on Boeing as the industry awaits more information. Boeing is focused on restarting 737 MAX production after a strike involving over 33,000 workers ended Monday, halting manufacturing of most commercial jets.



Read more at Investing.com: Can Spirit Aero survive and what it means for Boeing acquisition By Investing.com