Spirit Aero raises doubts over ability to continue as going concern
(Reuters) -Spirit AeroSystems, a key supplier to U.S. planemaker Boeing (NYSE:BA), warned on Tuesday there was “substantial doubt” that the company would be able to continue as a going concern.
Last month, Wichita, Kansas-based Spirit Aero said it was burning through dwindling cash reserves, as a strike by Boeing’s U.S. factory workers hammered the planemaker’s biggest supplier. Spirit’s cash balance at the end of the third quarter of 2024 was $218 million, according to an earlier filing.
The disclosure comes as Boeing is seeking to boost production of its 737 MAX after the weeks-long strike that ended on Monday (NASDAQ:MNDY) night halted output of its strongest-selling plane and other models.
Spirit Aero, which produces the fuselage for the MAX, was not immediately available for comment. Boeing declined comment.
Spirit Aero said that it had drawn down an entire $350-million bridge loan set up when Boeing agreed to acquire the supplier in June, confirming an earlier report from Reuters.
