Carlton Ling's blog
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.