More clarification about the 400 M$Already published Info (From the Finnancial 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 ($283 million) bank guarantee in favour of Alstom, the value of such guarantee will be reduced over time upon certain conditions or milestones being achieved.
Alstom doesn't have Bombardier's money held in an account or in escrow. The things doesn't occurs like that. Alstom held a bank guarantee from Bombardier. The name of the security is a ''letter of Guarantee''.
It was issued by a bank accepted by Alstom (a bank probably at least A graded). That bank held itself some guarantees from Bombardier (probably cash or the freeze of an amount on its credit line). The letter of Guarantee is a simple letter to Alstom written in clear terms (accepted by Alstom) that the bank will pay cash the amount of the guarantee if Alstom ''call the letter'' supported by the evidence that some event (a condition written on the letter) ''the trigger'' occur.
The event must be factual , clear, without interpretation and undivisible. There's no in-between or negociation. Alstom have to call the letter or no.
The letter has a termination date. After that date its value is ''0$''.
The guarantees are related to the ''criminal cases'' so the trigger have to be related to judgments or others judicial events. It would at least be a judgment against the Rail Division, inquiries is not enough.
For the Transnet case, there's ony inquiries and in the Suedish cases the individuals court cases endend with acquittals; there is only one appeal remains open. Letteraly, the individuals are acquitted but I don't know if the appeal is included in the ''trigger'' definition.
So, the public documents I have red doesn't included the termination date of the letter of Guarantee but many analysts and Bombardier's management talk of january 2023. If the letter has not been called by Alstom before that date, BINGO!
After the termination date, the securities held by the bank for the purpose of the letter of guarantee will be released. Alstom can do nothing after the termination date; no discussions, no refusal, no ''manana'' etc .