Boeing aims to raise $35 bln as workers strike prolongs

Boeing plans to raise up to $35 billion (£26.8 billion) from investors and banks as a major strike by thousands of its employees continues into its second month.

Also on Tuesday, the union representing more than 30,000 of the aviation giant's workers held a rally in the city of Seattle, News.Az reports, citing BBC.

The company is moving ahead with plans to layoff around 17,000 workers, with the first redundancy notices expected to be issued in mid-November.

Talks to end the walkout collapsed last week as the firm withdrew an offer that included a 30% pay rise over four years.

Boeing plans to raise up to $25bn in stock and debt offerings and said it had reached a deal with major banks to borrow as much much as $10bn.

"These are two prudent steps to support the company’s access to liquidity," Boeing said in a statement.

The company's shares rose by 2.2% after the announcements.

The moves to raise new funding came just days after Boeing announced it would cut its workforce by 10% and said it expected to record a loss for the last three months.

The redundancies will be compulsory and workers will be offered severance payments.

The company also said deliveries of its 777X planes will be delayed by a year.

Boeing is due to release its quarterly results on 23 October.

Major credit ratings agencies had previously warned that the strike could lead to downgrades, which would make it more expensive for the company to borrow money.

S&P Global estimated the strike is costing Boeing $1bn a month.

News.Az