RE:RE:RE:RE:Share PriceIf the BT sale to Alstom doesn't go thru, and there is no plan B of the kind I outlined before, then Bombardier would be at risk. I wouldn't trust CDPQ but I think IQ would come thru with something for sure. So the chances of a formal restructuring are very low IMO. But without a good plan B, the share price could continue to flounder for a while. But as some have said, it is likely that the deal will go thru - ALL the parties involved have a vested interest that it does.
The next step for the company will be tackling the debt. In my ideal scenario, the remaining debt would be bought back under par and replaced with no interest loan in exchange for cheap shares (just saw a pipeline deal where the investor lent $4B interest free for a 25% stake). Because that gives Martel the room to grow the business and not focus solely on cashflow (to pay the interest on the debt) plus it lowers the company's break-even point making it much more resilient to the volatility inherent in this kind of business (in the old days semiconductor companies didn't borrow and kept a lot of cash - in case of the inevitable downturn and also when (not if) there was a technology change and they needed to spend on new products).
(surely it will with EU and union approval)
pierrelebel wrote:
johnney wrote "...if this would of been the case, they would already applied for Bankrupsy,..."
Everyone is entitled to an opinion.
However, looking at the facts (financial reports) there is no point in filing for bankruptcy protection (CCAA) at this point. The plan for many years has been a slow orderly liquidation of the company's assets to raise cash. Why change that mid-course? It makes no sense at this time. Martel has indicated he will continue to work towards completion of the already announced sales of assets. Let him complete that assignment.
"Peiople who tells the others to sell on this board are nothing else than shorters, or want to buy cheap shares from members here on the board!"
Again, everyone is entitled to an opinion but, quite clearly, that makes no sense. There are posters here that have indicated for years that BBD.B shares were not "investment grade". That does not make them "shorters" nor "wanting to buy cheap shares".
This forum is open for people to express opinions or relate facts. We see many cheerleaders making optimistic claims based on dreams. That's OK. It is their right to dream and express it. Others may indicate some "red flags" and you and all readers are free to take note or not.
It is your money.... you do as you see fit.