Boeing to Arrange $2.3 Billion in TWA Loans
<i> Bloomberg News</i>
Boeing Co. said it agreed to arrange $2.36 billion in loans for Trans World Airlines Inc., which has had two brushes with bankruptcy this decade, to help secure jetliner purchases from the airline. The agreement, disclosed in a regulatory filing, could leave the aircraft maker liable for the loans if TWA, which has junk-rated credit, defaults on payments. Boeing arranges loans for many aircraft purchases through its customer-financing unit. A Boeing spokesman said even a TWA default would not have a “material” impact on earnings because Boeing would still own the underlying collateral, TWA’s planes.