Spirit AeroSystems, the primary supplier to Boeing’s 737 Max program, has been directed to lower its deliveries further in 2020 from the lingering effects of the global pandemic and Max grounding, according to a Spirit filing with the Securities and Exchange Commission (SEC) after the close of the market on Monday. “The B737 MAX grounding coupled with the Covid-19 pandemic is a challenging, dynamic, and evolving situation for Spirit,” the company said in Monday’s filing. “During this time, Spirit plans to work with Boeing to manage the B737 production system and supply chain.”

In a letter dated June 19, Boeing directed Spirit to reduce its 737 shipset deliveries from 125 to 72. A shipset comprises the fuselage, pylon, wing leading edges, thrust reverser, and engine nacelle. With the delivery target now set at 72 shipsets, Spirit already has delivered 35, leaving it with 37 more over the remainder of 2020. On June 10, Spirit warned of an expected reduction of 737 shipsets based on a June 4 letter from Boeing but didn’t provide specifics.

“Given the substantial production plan reduction, Spirit could breach the financial covenants under its credit agreement in the fourth quarter of 2020 without an amendment or waiver,” the Wichita-based supplier said in the SEC filing. “Spirit is in communication with its lenders regarding this matter, and intends to work with them expeditiously to obtain appropriate relief from its covenants.”