Bombardier likely to need government help as factories shut for COVID-19, analyst says
The fallout from COVID-19 threatens Bombardier's already tenuous liquidity position and possibly its planned asset sales
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March 24, 2020 - by NICOLAS VAN PRAET for theglobeandmail.com
Bombardier Inc. could be forced to seek another government bailout to survive as the economic crisis caused by the novel coronavirus pandemic pummels Canada's industrial base, an analyst said.
The fallout from COVID-19 threatens Bombardier's already tenuous liquidity position and possibly its planned asset sales, Cowen & Co. analyst Cai von Rumohr said in a research note published Monday. He said the company may not be able to recover without government help.
"We see Canadian/Quebec governments as likely to offer support if Bombardier gets close to the edge," Mr. von Rumohr said. "However, their interest will be to save jobs, not Bombardier shareholders."
The comments highlight the depth of the trouble from COVID-19 for Canada's big industrial companies, particularly those that had fragile balance sheets...
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