By Kim Khan
Investing.com – Boeing (NYSE:) tumbled in morning trading Wednesday following a report that it plans to draw down the full $13.8 billion of its recently-agreed loan facility.
Shares sank 8.9%.
Boeing will draw down $13.8 billion as early as Friday to deal with market turmoil and the disruption of the travel industry from Covid-19, Bloomberg reported.
The company was already facing financial issues following the grounding of its 737 Max jet after two fatal crashes.
The move “highlights the feedback loops that I worry about — economics contaminating finance that then contaminates the economy,” Allianz (DE:) Chief Economic Adviser Mohamed El-Erian tweeted.
The stock is down about 35% year to date.
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