Boeing could face half-billion-dollar hit in Sea Launch bankruptcy

Boeing will take a $35 million charge to its second-quarter earnings due to the bankruptcy of the Sea Launch joint venture, and could wind up covering loans and credit guarantees that would add another $478 million to the financial fallout.

Boeing is a 40 percent owner in the Long Beach, Calif.-based company, which sought Chapter 11 protection Monday. Sea Launch, which puts commercial satellites into orbit using an oceangoing platform or a former Soviet launch site in Kazakhstan, was created in 1995 by Boeing and partner companies from Russia, Ukraine and Norway.

In a regulatory filing Thursday, Boeing said it and another partner are the guarantors of about $448 million in Sea Launch debt, which is now due.

Boeing said can seek reimbursement from its partners so it doesn't end up paying more than 40 percent of the tab. It "intends to pursue vigorously all of its rights and remedies against Sea Launch and the other Sea Launch partners," the filing said.

However, if it doesn't get reimbursed, "Boeing could incur additional pre-tax charges of up to $478 million."

Boeing itself is owed $978 million by Sea Launch, court documents say.