The Globe and Mail reports in its Friday edition that Bombardier boss Alain Bellemare is doing everything in his power to get in front of repayments on $9.3-billion of debt (all figures U.S.). The Globe's Andrew Willis writes that loans are a hangover that stems in large part from a party that took place before Mr. Bellemare arrived in 2015, when Bombardier dropped $6-billion on a commercial aircraft business, only to finally cut all ties with the project Thursday. For Bombardier, debt relief is expected to come from the sale of one of the company's two remaining divisions. Mr. Bellemare is running simultaneous talks in Europe and North America aimed at finding new owners for either the company's rail or business-jet unit. There are discussions playing out with France's Alstom SA and Japan's Hitachi on the train side, while on the plane side, Bombardier is talking to U.S. conglomerate Textron and private-equity giant the Carlyle Group. Mr. Willis says that while the process is confidential, European media report the sale of the train-manufacturing business is the most likely scenario, but selling the transportation division might not generate enough money to truly fix the company's debt-heavy balance sheet.
© 2020 Canjex Publishing Ltd. All rights reserved.