07:04 AM EDT, 04/24/2024 (MT Newswires) -- Spirit AeroSystems ( SPR ) said late Tuesday that it will be receiving $425 million in advance payments from Boeing ( BA ) that will be used to address issues such as high levels of inventory and lower cashflows after the planemaker had to cap its 737 MAX production for regulatory compliance.

Spirit said in a regulatory filing that the parties have agreed that the fuselage supplier will maintain a production rate that supports Boeing's ( BA ) contractual production demand.

Spirit said the advances will be used on various issues that arose from the decrease in expected deliveries to Boeing ( BA ), as well as higher factory costs due to enhancements in quality assurance, which were required by US regulators to address several quality issues surrounding the fuselages it makes for Boeings jets.

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