Carlton Ling's blog

More runway less plane

Carlton Ling's picture

Recently it was announced that the Quebec government will be providing Bombardier with much needed new capital. The struggling CSeries commercial jet program will be moved into a joint venture (JV) and the Quebec government will contribute $1 billion into this JV in exchange for a 49.5% interest in the company. This cash contribution will be restricted to the JV and does not represent bondholder collateral. This would seemingly be a short-term positive for a company that has under-delivered on its aerospace program development and is quickly burning cash.

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