RE:RE:RE:BT145, it was your instinct too was it not that BT should be kept. It's very hard to keep positive tbh between negative public view, friends and the share price....
bbdbinvestor145 wrote: Hey Pablo.
The Alstom deal is going down the tubes. I think Bombardier will NIX it if they can some loan guarantees from IQ. But they gotta do a side deal with CDPQ before they NIX it.
Your proposal for a guaranteed loan from CDPQ and IQ guaranteeing it is ideal. But are they smart enough to do it. If I we're IQ this scenario is way better than putting a billion right into BT or even what they did with CSeries.
This will drop the payments to a manageable state, and will automatically bring in profits. Every year after that, the Bomber can pay off part of that loan.
With reserves in hand plus the receits from these other closing deals they do just fine. My gut still says that BT will be fine with the Legacy projects.
BTW. When your neighbour the anylist said that the Bomber will not recover. I think he's just guessing. Just like us here.
Hopefully this Quebec CAQ ,Govt. sees the light. If they do? This SP can fly.
Cheers
145 pablo87 wrote: 145, everything is evolving very rapidly. Most experts and industry CEOs believe its going to take a while for air travel to recover.
Alstom merger should be called off and Bombardier resume their original business model - Planes and trains - there's a reason neither General Dynamics or Textron are strictly in business jets - too cyclical.
What they need is $5-6B long term loans at 2-3% ($1B CDPQ, $2B guaranteed by IQ, $3B Ottawa)(still much higher interest than Alstom pays), for CDPQ to take straight shares in BT (which is what they were planning to do with Alstom anyway not to mention the additional investment of 700M Euros) - no more 15%.
Use the proceeds plus cash on hand/asset sale proceeds to pay back all that expensive debt.
Interest cost goes down to $150M instead of $900M ($650M + $250M CDPQ 15%).