Bombardier Settles Long-standing Legal Dispute, Avoids Litigation Distractions

Bombardier has reached a settlement in the lawsuit titled Antara Capital Master Fund LP, Corbin ERISA Opportunity Fund Ltd. and Corbin Opportunity Fund, L.P. v. Bombardier Inc., et al., which has been pending in the New York State Supreme Court, Commercial Division New York County since January 2022. The agreement, pending the satisfaction of customary conditions expected to resolve in the coming days, will effectively end the lawsuit filed early last year.

The terms of the settlement, which remain confidential, ensure that all defendants are fully released without any admission of liability. This move is seen as a strategic step by Bombardier to eliminate the distractions and financial uncertainties tied to prolonged litigation.

In a significant aspect of the settlement, the plaintiffs, as beneficial holders of outstanding 7.45% Senior Notes due 2034, have consented to amendments made in 2021 to the indenture governing these notes. They have also agreed that the divestiture transactions mentioned in the lawsuit did not constitute a default under the indenture, coupled with a waiver of any alleged defaults related to these transactions.

This settlement is not expected to materially impact Bombardier’s financial results or its consolidated cash position, underscoring the company’s assessment of the lawsuit’s limited risk to its broader financial health.

Despite the company’s belief that the allegations were without merit, settling the lawsuit aligns with Bombardier’s commitment to focusing on its core business operations, indicating a preference for stability and operational efficiency over legal battles. This pragmatic approach may resonate well with stakeholders looking for steady leadership amidst potential corporate turbulence.

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