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Spirit Aero to receive as much as $350 million in funding from Boeing

Spirit AeroSystems said Tuesday that planemaker Boeing will pay up to $350 million in advance payments to the company, providing the having a hard time provider a lifeline as it continues to burn money after 4 consecutive years of losses.

Reuters had reported recently that Spirit and Boeing were close to reaching a financing contract as Spirit Aero is juggling financial and production obstacles, having released a. going concern alerting last week. The fuselage provider anticipates. to burn around $450 million to $500 million over the last three. months of 2024 and very first half of 2025, according to filings.

This arrangement helps improve our liquidity. We continue. to pursue a series of choices to resolve our monetary and. spacing storage constraints and are dealing with our clients. on these matters, Spirit representative Joe Buccino stated.

Spirit stated the advanced payments are to produce Boeing. products at the rates needed by the planemaker, and to. address Spirit's high levels of inventory and lower functional. capital, reduction in anticipated deliveries to Boeing and higher. factory costs to preserve rate readiness, and lingering effects. induced by the recent strike by Boeing employees.

Spirit, which must repay the $350 million in 2026, saw. its shares increase 1.2%.

Boeing,

which prepares to buy its one-time subsidiary

, is attempting to revive its damaged supply chain and jet. production after a 53-day strike stopped the majority of its output. Boeing has stated it plans to gradually resume production of its. 737 MAX as

machinists are set to go back to their tasks Tuesday

.

Spirit formerly divulged it drew down a $350-million. bridge loan set up when Boeing accepted obtain the supplier,. and previous advances from Boeing and competing Airbus that. Spirit has not paid back.

Spirit Aero's finances suffered when Boeing MAX. production plunged after a Jan. 5 mid-air blowout on a new. model. A new process for vetting fuselages for flaws presented. in March even more delayed Spirit's deliveries, leading to a. pile-up of fuselages inside and outside the provider's stretching. Kansas factory.

(source: Reuters)