Spirit AeroSystems in Turmoil: Liquidity Problems and Possible Rescue by Boeing

The American aircraft supplier Spirit AeroSystems is on the brink of financial collapse and is concerned about its future operational viability. The esteemed Boeing supplier recently reported a rapid increase in financial deficits, partly due to cash flow problems and production obstacles, seriously threatening its operational stability. As of September 26, the manufacturer reported a total debt of $4.4 billion, including $426.2 million in short-term liabilities. Liquid assets shrank from a significant $823.5 million at the end of last year to a modest $217.6 million. In a recent financial statement, Spirit AeroSystems assured that it urgently needs additional funds to remain operational for the next twelve months. Boeing's adjustments in production and delivery are cited as the main causes of the financial imbalance. In response, the company is working on a robust financing plan, which includes discussions on customer prepayments, potential asset sales, and even a merger with Boeing. Delivery targets for the Boeing B737 series and the impacts of a recent Boeing strike are also being addressed. To stabilize finances, management is considering several measures: issuing new securities or debt, expanding customer prepayments, and improving efficiencies, which may require workforce reductions or extended furloughs.