The 400 M$ : the real storyTo be sure that there is no misinterpretation of the 400 M$ garantee, I examined this in october. There is extracts from the 2021 annual financial statements:
In connection with the sale of Transportation to Alstom, the Corporation provided a €100 million ($113 million) bank guarantee in favour of Alstom to secure certain indemnities and guarantee obligations of the Corporation.
Also, the Corporation has agreed to an additional compliance-related indemnity. Under this indemnity, the Corporation is to indemnify Alstom or its affiliates for certain known compliance-related matters as well as for compliance-related violation or alleged violation (of any applicable laws or regulations, and including for any audits or other proceedings conducted by a governmental authority) arising within two years following the closing of the sale of Transportation to Alstom and relating to events which occurred prior to January 29, 2021. To secure this indemnity, the Corporation provided a €250 million ($283 million) bank guarantee in favour of Alstom, the value of such guarantee will be reduced over time upon certain conditions or milestones being achieved.
..... Sweden
.....While this matter relates to the Transportation business, which has been divested as part of the sale to Alstom on January 29, 2021, the Corporation remains involved in this legal proceeding and remains liable to Alstom,.....
Transnet
......While this matter relates to the Transportation business, which has been divested as part of the sale to Alstom on January 29, 2021, the Corporation remains involved in this matter and remains liable to Alstom..... What I understand: - There is a first bank guaranty ( secured by Bombardier's cash) of 100 M Euros (97 M US$ today). No termination date is mentioned, but it's for indemnities and guaranties by Bombardier. The description differ widely with the second bank guaranty, so it is not for the compliance problem described in the second guaranty.
- The second guaranty is related to compliance violations that would come out before January, 21, 2023. It's a 250M Euros bank guaranty (secured by cash- 243 M US$ today). This guaranty will be reduced upon certains conditions.
- In the Sweden case ( for a 2013 contract) , 2 trails were held and the individuals has been freed clear. In the first case the appeal case is pending for one charge only. In the second case, the appeal is pending. The World Bank and the US Dept. of Justice too has audit process inthe case without new developments.
- In the Transnet case (for a 2014 contract), The South Africa dept. of Justice opened an inquiry in 2018 about this contract, no developments since that date. In 2021, the US Dept. of justice ask information about this contract.
My conclusions: The first guaranty is about general indemnities and guaranties; no date is mentioned but after 2 years I understand that all complains are known and that a termination in jan 2023 is likely. For the second one, It's not written on the financial statements that the guaranties will be cancelled two year after the deal. It's only written that the compliance violation has to be known before january 2023. I don't know if an inquiry without a charge deposit is enough to be reconized as an event for the guaranty. But, it is written that the guaranty will be reduced upon certains scedule and conditions. There's only 2 files known as complance violations, and in the first one (Sweden) , 2 acquittals has been obtained and they are waiting for the appeals and in the Transnet case, it's only endless inquiries.