United States: Boeing’s supplier Spirit AeroSystems (SPR.N) issued a warning, saying there was a “substantial doubt” that it could continue as a going concern.
Last month alone, Spirit Aero revealed it was going through the thinning cash with the strike by Boeing’s U.S factory workers, hardest on the Wichita, Kansas-based supplier that builds the fuselage for the planemaker’s most popular 737 MAX jet, as reported by Reuters.
Impact of Boeing Worker Strike
Spirit had about $218 million of cash and cash equivalents as of the end of the third quarter of 2024, based on its October filing.
Challenges in 737 MAX Production Resumption
The latest disclosure on Tuesday comes 4:00 AM at a time when Boeing is trying to resume production of its 737 MAX after weeks of strike, which ended on Monday evening. The shutdown of more than 33,000 of the US West Coast workers affected most models of Boeing commercial jets, including the 737.
Company’s Financial Strategies
“We retain a range of options and levers to address our financial and spacing constraints and are working with our customers on these matters,” said Joe Buccino, spokesperson for Spirit Aero, which is a critical supplier to Boeing and rival Airbus (AIR.PA).
Boeing declined to comment.
Last month, the company recorded more than $24 billion in fundraising.
Recent Financial Actions and Debt Repayment
Spirit Aero in October said it had prepaid an entire $350 million bridge loan established when Boeing agreed to acquire the supplier in June, as reported by Reuters. Spirit Aero had previously reported using up a $425-million customer advance received from Boeing, as reported by Reuters.