Boeing close to funding agreement to help supplier Spirit Aero, source says

Spirit AeroSystems and Boeing are close to reaching a funding agreement that would give a cash lifeline to the struggling Boeing supplier, an industry source familiar with the matter said. A deal could be announced in the next few days, said the source, who spoke on condition of anonymity about the private talks, although he cautioned that it has not yet closed. Spirit Aero is juggling financial and production challenges, having issued a liquidity warning on Tuesday after four years of losses. It expects to burn around $450m to $500m in cash over the last three months of 2024 and first half of 2025, according to filings. Boeing, which plans to buy its one-time subsidiary, is trying to revive its battered supply chain and jet production after a weeks-long strike halted most of its output. Spirit could not be immediately reached. Boeing declined to comment. Spirit said this week it is seeking ways to raise liquidity including possible customer advances. The supplier has previously disclosed it has drawn down a $350m bridge loan set up when Boeing agreed to acquire the supplier, and previous advances from both the U.S. planemaker and rival Airbus that Spirit has not repaid. The Wichita, Kansas-based aerostructures company is a key supplier to the world's two major commercial planemakers. Spirit had been weighing furloughs of workers on its 737 MAX fuselage program after it ran short on storage space and cash, a second source close to the matter said.<br/>In late October, Reuters first revealed a decision by the supplier to temporarily furlough 700 employees, who produce parts for Boeing's 767 and 777 jets, due to space constraints.<br/>