Boeing Loan Lender Demand Rises to $14 Billion

Boeing looks to weather the fallout from the grounding of its 737 MAX plane.
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Boeing  (BA) - Get Report reportedly has received orders of about $14 billion for a loan that the plane maker expects will help it weather the fallout from the grounding of its 737 MAX jet, Bloomberg reported.

Boeing had sought a loan of at least $10 billion, with the potential for that to increase. Reports earlier this week said the loan had grown to $12 billion, and now $14 billion.

The loan will allow Boeing flexibility while the company works to get its 737 MAX back in the air, according to Bloomberg. The loan, which hasn’t been finalized, is expected to close on Feb. 6.

Boeing reported a surprise loss for the three months ended in December, marking the company’s first annual loss for company since 1997.

Boeing said MAX-related delay and grounding costs increased by $2.6 billion over the quarter, and just more than $18 billion in total, while cash flow was a negative $2.22 billion over the final three months of the year.

"We recognize we have a lot of work to do," said CEO David Calhoun. "We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public. We are committed to transparency and excellence in everything we do."

"Safety will underwrite every decision, every action and every step we take as we move forward," he added. "Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process."