Boeing (BA, Financials) is preparing to launch a plan to raise over $15 billion by selling common stock and convertible preferred shares, according to a source briefed on the matter. The capital raise could increase depending on demand, Reuters said Monday.

• Warning! GuruFocus has detected 4 Warning Signs with BA.

Boeing has been working to improve its financial situation as a continuous machinist strike stops 737 MAX manufacturing. Reuters reports that machinists decided last week to turn down Boeing's most recent offer to call off the strike.

Rising regulatory scrutiny and manufacturing difficulties have the corporation under strain. Boeing reportedly recorded a $6 billion quarterly deficit.

In a previous regulatory filing, Boeing said it might raise up to $25 billion in shares and debt while striving to maintain its investment-grade credit rating.

Reuters reports that Boeing has obtained a $10 billion loan deal with reputable lenders. The firm also intends to postpone delivery of its 777X plane by a year and reduce 17,000 positions, or 10% of its worldwide workforce.

Credit rating firms S&P, Moody's, and Fitch have said Boeing's rating may be lowered to junk status should new debt be issued without resolving $11 billion in outstanding debt by February 2026.

This article first appeared on GuruFocus.