Exclusive: Bombardier to book major writedowns, outline cash infusion from Quebec - sources
Reuters
Published Oct 28, 2015 10:27AM ET
Exclusive: Bombardier to book major writedowns, outline cash infusion from Quebec - sources
By Andrea Shalal
WASHINGTON (Reuters) - Bombardier (TO:BBDb) is set to permanently mothball its Learjet 85 program, book a writedown on its CSeries program, and announce that the government of Quebec will be investing in the narrowbody jet program, according to several sources familiar with the matter.
The embattled Montreal-based company, which has been looking at a wide range of options to help it fund its long-overdue and billions of dollars over-budget CSeries jet program, will form a joint venture with the Quebec government on the CSeries, said the sources, who asked not to be named as they were not authorized to discuss the matter.
To form a joint-venture, Bombardier will write down billions of dollars it has already sunk into the CSeries, said the sources. If a deal is reached, the government would be on the hook to fund half the final development costs on the new jet, which is slated to enter service next year.
A Bombardier spokeswoman declined comment. A spokeswoman for Quebec's economy minister was not immediately available for comment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.