Boeing Plans Full Drawdown of $13.825 Billion Loan
- Planemaker already tapped $7.5 billion of the loan last month
- Boeing now faces falling demand for new airplanes due to virus
Grounded Boeing Co. 737 Max airplanes are seen in a parking lot near Boeing Field in Seattle, Washington, on Dec. 17, 2019.
Photographer: David Ryder/BloombergBoeing Co. is planning to draw down the full amount of a $13.8 billion loan as early as Friday as the planemaker grapples with worldwide travel disruptions from the coronavirus, people familiar with the matter said.
Boeing obtained the loan from a group of banks last month to help it deal with its cash burn while it prepares to return its 737 Max plane to the skies. It initially tapped about $7.5 billion of the debt, and is now expected to draw the rest, said the people, asking not to be named discussing private information. Boeing plans to draw the remainder of the loan as a precaution due to market turmoil, one of the people said.