By Allison Lampert and Manas Mishra
(Reuters) -Spirit AeroSystems, a key supplier to U.S. aircraft manufacturer Boeing (NYSE:), warned on Tuesday that there was “substantial doubt” that the company could continue as a going concern.
Last month, Spirit Aero said it was burning its dwindling cash reserves as a strike by Boeing’s U.S. factory workers put pressure on the Wichita, Kansas-based supplier that produces the fuselage for the planemaker’s best-selling 737 MAX plane. .
Spirit’s cash balance at the end of the third quarter of 2024 was $218 million, according to an October filing.
The latest revelation on Tuesday comes as Boeing tries to revive production of its 737 MAX after the weeks-long strike ended on Tuesday. Monday (NASDAQ:) night. The strike by more than 33,000 workers on the US West Coast has halted production of most of Boeing’s commercial jetliners, including the 737.
“We maintain a range of options and levers to address our financial and space constraints and are working with our customers on these matters,” said Joe Buccino, spokesman for Spirit Aero, a key supplier to Boeing and rival Airbus.
Boeing declined to comment.
The company raised more than $24 billion last month.
Spirit Aero said in October it had taken out a full $350 million bridge loan when Boeing agreed to acquire the supplier in June, confirming an earlier Reuters report. Spirit Aero previously announced that it has exhausted a $425 million customer advance from Boeing.
