By Tyler Durden | 17 March 2020
ZERO HEDGE — Update (2000ET): Boeing – unsurprisingly – has issued a statement fully backing the idea of free money handouts from the government to save itself.
We appreciate the support of the President and the Administration for the 2.5 million jobs and 17,000 suppliers that Boeing relies on to remain the number one US exporter, and we look forward to working with the Administration and Congress as they consider legislation and the appropriate policies.
Boeing supports a minimum of $60 billion in access to public and private liquidity, including loan guarantees, for the aerospace manufacturing industry. This will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery. Funds would support the health of the broader aviation industry, because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain. The long term outlook for the industry is still strong, but until global passenger traffic resumes to normal levels, these measures are needed to manage the pressure on the aviation sector and the economy as a whole.
We’re leveraging all our resources to sustain our operations and supply chain. We continue to assess additional levers as we navigate the current challenges and position the industry for the long term. As reported last week, drawing on our delayed draw loan term was a prudent step to increase our liquidity and ease some of the significant near-term pressures on our business. We filed an 8-K today to formally disclose that draw down.
The $80 billion market cap company may consider selling some stock before demanding that taxpayers foot the bill of its greed which translates into tens of billions in buybacks funded by tens of billions in debt.
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A new disclosure on Tuesday afternoon details yet another troubling development for Boeing.
In its latest 8K, the plunging planemaker has completely drawn down its $13.8 billion credit line that it entered in October 2018 as it “navigates current business challenges” exposing just how fast this company is burning through cash.
“As of March 13, 2020, Boeing has fully drawn on the Credit Agreement, consisting of approximately $13.8 billion, which amount includes additional commitments made subsequent to the initial closing date.
For additional information on the terms and conditions of the Credit Agreement, see Boeing’s Current Report on Form 8-K dated February 6, 2020.
We continue to have access to revolving credit agreements entered into on October 30, 2019, which have also been disclosed. These facilities, which to date have not been drawn upon, provide us with additional liquidity as we navigate the current business challenges. For additional information on these credit facilities, see Boeing’s Current Report on Form 8-K dated October 30, 2019.”
This comes just hours after sources told Reuters that Boeing is seeking a bailout of ‘tens of billions’ in US government loan guarantees amid the Covid-19 crisis. […]
Boeing may be extending its gratitude for loans and handouts a bit prematurely. There are plenty of Capitol Hill Democrats — as well as presidential candidates — who claim they support the Green New Deal, which advocates for a dramatic reduction in the commercial aviation industry to save the planet from global warming. If Green New Deal supporters approve a Boeing bailout, they prove themselves hypocrites and risk losing support of climate activists.
Let Boing fall they are guilty and not of use to the real eople