Boeing CFO says aerospace industry needs credit urgently, markets closed to new debt

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Boeing CFO says markets essentially closed to new debt

) chief financial officer said on Tuesday the U.S. aerospace industry urgently needs credit to cope with the coronavirus pandemic but “markets essentially are closed” to new debt.

The comments on credit in an interview with Reuters appeared to underscore the U.S. planemaker’s opposition to granting equity as part of an industry-wide government bailout deal. Chief Executive Dave Calhoun told Fox Business earlier on Tuesday that Boeing could “take a different course” if lawmakers “attach too many things” to a stimulus package.

Smith said Boeing, which drew down a $13.8 credit line it took in February but has a further $9.6 billion in reserve, was not in discussions to add new commercial debt facilities. Despite such immediate pressures, Smith said Boeing was beginning to see signs of a recovery in China, echoing comments by Airbus Chief Executive Guillaume Faury on Monday.

 

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It makes sense..who in their right mind would lend now.

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