This idea has crossed my mind as well but the size of the debt in front of these has always seemed too daunting. I don't think the Feds or the Qc govmt wants BBD to go down in the flames of a bankruptcy but after Nortel who knows. Perhaps the potential of a transport sale as mentioned earlier in the Summer in the Globe (below) could provide some breathing room for the aero side. I still wonder who put so much money into this thing by way of common equity earlier this year.
Desjardins analyst Benoit Poirier figures Bombardier Transportation could be worth as much as $6.6-billion. Last month, China's two state-owned train makers merged to form the single biggest company in the sector globally by revenue. In some ways, a Bombardier-Siemens combination would be "a European answer to the huge Chinese merger," said Maria Leenen, chief executive officer of SCI Verkehr, a rail strategy and consulting firm in Hamburg, Germany.
Agreed. I think how you lose is if the company goes bankrupt or the gov't comes in to save the last few manufacturing jobs in Canada but lets the equity burn. I doubt there is enough appetite to do another debt deal which would be another knock.
It is increasingly clear to me that C-series will make or break that company long term considering BBD's cash generative businesses are weakening (Global delays, bizjet mkt weakness, weaker margins at Transport)... which was less apparent to me following the equity raise that happened earlier in the year. The good thing is that we should see cash burn come down as we get closer to EIS completion but I don't know what the catalyst is for airlines to say... okay it is time to put in orders...