Boeing Sinks on Report It Will Draw Down $13.8 Bln Loan

By Kim Khan

Investing.com – Boeing (NYSE:) tumbled in morning trading Wednesday following a report that it plans to draw down the full $13.8 billion of its recently-agreed loan facility.

Shares sank 8.9%.

Boeing will draw down $13.8 billion as early as Friday to deal with market turmoil and the disruption of the travel industry from Covid-19, Bloomberg reported.

The company was already facing financial issues following the grounding of its 737 Max jet after two fatal crashes.

The move “highlights the feedback loops that I worry about — economics contaminating finance that then contaminates the economy,” Allianz (DE:) Chief Economic Adviser Mohamed El-Erian tweeted.

The stock is down about 35% year to date.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.