Bombardier receives notice of claim from certain holders of 2034 notes

posted on 2nd February 2022 by Eddie Saunders
Bombardier receives notice of claim from certain holders of 2034 notes

Bombardier today announced that it has received a letter dated January 31, 2022 from counsel to certain holders of 7.450% Senior Notes due 2034 (the “2034 Notes”), and has learned that such holders also filed a complaint before the Supreme Court of the State of New York (the “Action”), reiterating claims made in April 2021 substantially to the effect that the Corporation’s divestitures of non-core assets, including its transportation business, regional jet program and aerostructures division (the “Transactions”), constitute a breach of certain covenants under the indenture governing the 2034 Notes and further alleging that the actions of the Corporation in May 2021, addressing the matters raised in the April 2021 letter, breached the rights of such holders.

“The Corporation believes that these allegations are without merit and intends to vigorously defend itself against the Action,” A Bombardier statement read.

“The Corporation believes it is not and has never been in breach of any covenant under the relevant indenture and that the actions taken by it in May 2021, with the support and consent of the requisite holders of the relevant debt securities of the Corporation were fully compliant with the terms of the indentures under which such notes were issued.

“The Corporation also believes the actions it has taken enabled it to reposition the business, strengthen its balance sheet, accelerate de-leveraging and better position Bombardier for long term growth and value creation”.