Bombardier bondholders claim broken covenants

Bombardier has launched consent solicitations with respect to its outstanding senior notes or debentures following claims by bondholders that the company has breached covenants through the sale of its non-core assets. On April 22, 2021, Bombardier received a letter from counsel to a holder of 2034 Notes, claiming that the Corporation’s divestitures of non-core assets, including its transportation business, regional jet program and aerostructures division, constitute a breach of certain covenants under the indenture governing the 2034 Notes. Bombardier states that it believes the allegations are “without merit” and that it has not breached any covenant under the indenture. Bombardier