UPDATE 1-Brazil’s Embraer loses $292 million as stoppages burn cash

SAO PAULO (Reuters) – Brazilian planemaker Embraer (EMBR3.SA) reported a $292 million first quarter loss on Monday due to a coronavirus crisis sales slump and the impact of a failed deal with Boeing Co (BA.N). Embraer also said it was seeking new liquidity. Reuters reported that Brazil’s development bank BNDES is helping coordinate a $600 million loan for the planemaker, which burned through $677 million in cash in the quarter. The firm said its decision to put staff on paid leave in January in order to finalize details of the Boeing deal was largely responsible for a 23% drop in revenue. In March, Embraer again put workers on leave due to the coronavirus pandemic. Boeing was going to buy most of Embraer’s commercial aviation unit for $4.2 billion, but the deal collapsed suddenly in April, leaving Embraer without a clear plan B. Reuters reported on Friday that China, Russia and India were circling Embraer and studying potential moves, although any talks would be preliminary. Embraer said on Monday that it was not currently negotiating with China’s state-owned COMAC, Russia’s Irkut or India on any potential deal to replace the one with Boeing, adding that it regularly evaluates potential partnership options.

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