Bombardier says 'actively pursuing options to strengthen balance sheet'
Consistent with Bombardier's five-year turnaround plan, and following a comprehensive review of strategic alternatives, the company is actively pursuing options to strengthen its balance sheet and enhance shareholder value. Liquidity remains strong, with year-end cash on hand of approximately $2.6B. The CRJ program sale to Mitsubishi Heavy Industries and Aerostructures sale to Spirit AeroSystems Holding, both of which are still tracking to close by mid-year, will provide an additional $1.1B of cash subject to customary closing adjustments. The company has received most of the regulatory approvals required for closing of the CRJ sale. "Since launching our turnaround plan, we have addressed our underperforming aerospace assets, completed our heavy investment cycle, and put the company on a solid path toward organic growth and margin expansion while prudently managing our liquidity and heavy debt load," said Alain Bellemare, President and CEO, Bombardier. "The final step in our turnaround is to de-lever and solve our capital structure. We are actively pursuing alternatives that would allow us to accelerate our debt paydown. The objective is to position the business for long-term success with greater operating and financial flexibility."