Airbus nears funding, payment terms with Spirit AeroSystems- Reuters
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Airbus (OTCPK:EADSY) is nearing an agreement to provide funding and revised payment terms to Spirit AeroSystems (NYSE:SPR) as the aircraft parts maker struggles with its finances. Spirit shares fell 1.1%.
An agreement could be reached as soon as Wednesday, according to a Reuters report on Tuesday, which cited a person familiar with a matter.
An Airbus (OTCPK:EADSY) agreement with Spirit (SPR) comes after the supplier on Tuesday confirmed a new advance payments pact with Boeing (BA). Boeing committed to pay as much as $350 million in the advanced payment accord.
An Airbus spokesperson told Reuters it had “no comment on any potential support we may provide to our suppliers”.
The news comes after Spirit (SPR), Boeing’s (BA) key supplier and acquisition target, last Tuesday disclosed it raised substantial doubt about its ability to continue as a going concern amid mounting losses, rapid cash burn and production challenges.
Spirit Aero (SPR) said it has been facing bloated inventory and lower cash flows due to recent changes in the production and delivery process implemented by Boeing (BA).
Under Boeing’s (BA) planned $37.25 a share takeover of Spirit (SPR), Airbus (OTCPK:EADSY) will take over operations of loss-making plants that supply key parts for its A220 and A350 passenger jets.