Bombardier believes it has strong enough to get through the crisis

Bombardier estime avoir les reins assez solides pour traverser la crise

Photo: Paul Chiasson, The canadian Press
At the end of June, the cash and cash equivalents Bombardier totaled $ 1.7 billion and the company also had access to $ 700 million in funding.

Bombardier believes it has strong enough to get through the turbulence caused by the pandemic COVID-19, given that it has a lot less spent in the second quarter, in addition to having obtained a loan from the firm’s new york-based HPS Investment Partners up to US $1 billion.

Waiting for the verdict of the european Commission on the proposed sale of its rail division to the French giant Alstom, the multinational quebec announced Wednesday, have drawn US $500 million less than planned in its cash flows for the second quarter. Bombardier, which continues its refocusing towards business aircraft, has not given details about the change surrounding the use of its cash flows for the second quarter ended June 30. The details will be known on the 6th of August, when will be disclosed the results.

The company, which has seen its activities be temporarily suspended as a result of closures caused by the pandemic COVID-19, should be consumed approximately $ 2.6 billion of its cash flows during the first half of the year. At the end of June, the cash and cash equivalents Bombardier totaled $ 1.7 billion and the company also had access to $ 700 million in funding. Thanks to its new credit facility, its liquidity is projected to rise to $ 3.4 billion.

“We just simply give additional flexibility to manage through the crisis, pointed out by e-mail, a spokesman for Bombardier, Olivier Marcil. For the moment, it is [comfortable] with the solution found from the private sector. Our liquidity situation is solid. “It has not indicated whether the obtaining of the credit facility ruled out definitively the possibility to see the company knock at the door of governments in the hope of getting a financial boost.

In the margins of the meeting of shareholders, on 18 June, the president and chief executive officer of the aircraft, Eric Martel, had indicated his preference to turn to the private sector rather than to governments, in order to obtain temporary financial assistance.

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