Boeing Plans $15 Billion Capital Raise Amid Financial Challenges

Boeing Co (NYSE:BA) is set to initiate a $15 billion capital raise, potentially starting as early as Monday. This move comes amidst challenges such as a significant strike and declining cash reserves. The strike, involving over 30,000 employees, has severely impacted the company's financial standing, leading to significant cash outflows over the past month.

The company has reportedly secured approval from the Securities and Exchange Commission (SEC) to raise up to $25 billion. This capital raise is part of Boeing's strategy to stabilize its finances and prevent a potential downgrade of its credit rating to junk status.

The strike is one of several challenges Boeing is currently facing. Earlier, the Starliner spacecraft's maiden flight encountered issues, stranding two astronauts on the International Space Station. Additionally, Boeing has faced increased regulatory scrutiny concerning its safety standards, following an incident where a door malfunction occurred on an Alaskan Airlines flight.