Boeing has agreed to supply 737 fuselage manufacturer Spirit AeroSystems with advance payments of $425 million, according to Reuters.
The cash will help the Wichita, Kansas-based supplier and former Boeing subsidiary address higher levels of inventory and lower cash flows stemming from the Federal Aviation Administration's (FAA) decision to cap the number of 737 Maxs the planemaker can produce.
Boeing, which just experienced a disappointing first quarter, is currently limited to producing 38 737s per month.
As part of the agreement, Spirit will maintain a production rate that meets Boeing's contractual demand and provide specified financial information weekly.
In addition to the payments, Boeing said it continues "to work together with Spirit to improve quality, stabilize operations and support our customers."
The deal is the latest development in the ongoing saga involving Boeing and quality control issues in the wake of a door panel blowing out mid-air on an Alaska Airlines flight in January. It was earlier reported that Boeing was in talks to acquire Spirit.
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