Spirit AeroSystems Raises Concerns About Going Concern Status
Spirit AeroSystems (SPR.N), a vital supplier to Boeing, has expressed “substantial doubt” regarding its ability to continue as a going concern. The warning comes amid financial struggles highlighted in a recent disclosure, indicating that the company is rapidly depleting its cash reserves. Last month, Spirit Aero reported that it was burning through its funds as a strike by Boeing’s U.S. factory workers significantly impacted operations at the Wichita, Kansas-based facility, which produces fuselages for the best-selling 737 MAX jet.
As of the end of the third quarter of 2024, Spirit’s cash balance stood at $218 million, according to an October filing. The announcement coincides with Boeing’s efforts to restart production of the 737 MAX following a lengthy strike that halted output for most of its commercial jet models.
“We retain a range of options to address our financial constraints and are collaborating with our customers on these matters,” said Joe Buccino, a spokesperson for Spirit Aero, which supplies both Boeing and rival Airbus (AIR.PA). Although Boeing declined to comment, Spirit Aero recently raised over $24 billion in funding.
In October, Spirit Aero confirmed it had fully drawn down a $350 million bridge loan established when Boeing announced plans to acquire the supplier in June. The company also disclosed utilizing a $425 million customer advance from Boeing to bolster its finances during this challenging period.
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