Bombardier Statement Regarding Alstom Request for Arbitration

Rhea-AI Summary

Bombardier has received a notice from Alstom S.A. requesting arbitration over alleged contractual breaches related to the sale of Bombardier's Transportation business on January 29, 2021. Bombardier believes it has strong grounds to defend itself and will also contest certain purchase price adjustments that reduced the proceeds from the sale. The arbitration process may take several years, and Bombardier will limit its comments on the matter due to confidentiality obligations.

Positive

• Bombardier plans a vigorous defense against Alstom's claims.
• The company aims to challenge purchase price adjustments to recoup lost proceeds.

Negative

• Arbitration proceedings could take several years, which may create uncertainty.
• Potential financial implications from the disputed purchase price adjustments.

MONTRÉAL, April 25, 2022 (GLOBE NEWSWIRE) -- Bombardier (TSX: BBD.B) today announced that it has received a notice from Alstom S.A. requesting arbitration before the International Chamber of Commerce pursuant to the agreement relating to the sale by Bombardier of its Transportation business (Transportation) on January 29, 2021 (the Transaction). In its request for arbitration, Alstom is alleging that Bombardier is in breach of certain contractual provisions.

Bombardier has good grounds to defend itself against Alstom’s claim and intends to do so vigorously. As noted in its press release dated January 29, 2021, Bombardier also intends to challenge certain purchase price adjustments which resulted in proceeds from the Transaction being lower than initially estimated.

Arbitration proceedings could last several years. Given that Bombardier is subject to confidentiality obligations, it will abstain from commenting further on these proceedings unless required by applicable law.

About Bombardier

Bombardier is a global leader in aviation, focused on designing, manufacturing and servicing the world's most exceptional business jets. Bombardier’s Challenger and Global aircraft families are renowned for their cutting-edge innovation, cabin design, performance and reliability. Bombardier has a worldwide fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. Bombardier aircraft are also trusted around the world in special-mission roles.

Headquartered in Montréal, Québec, Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. The company’s robust customer support network includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, the UAE, Singapore, China and an Australian facility opening in 2022.

For corporate news and information, including Bombardier’s Environmental, Social and Governance report, visit bombardier.com. Learn more about Bombardier’s industry-leading products and customer service network at businessaircraft.bombardier.com. Follow us on Twitter @Bombardier.

Forward-looking statements

Certain statements in this announcement are forward-looking statements based on current expectations. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from those set forth in the forward-looking statements. Please refer to our note on “Forward-Looking Statements” contained in our latest published financial report.

For Information

Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240 9649

Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167

FAQ

What arbitration has Bombardier received notice for?

Bombardier received notice from Alstom S.A. for arbitration related to alleged contractual breaches concerning the sale of its Transportation business.

What date was Bombardier's Transportation business sold?

The Transportation business was sold on January 29, 2021.

What are Bombardier's plans regarding the arbitration with Alstom?

Bombardier intends to defend itself vigorously against Alstom's claims and to contest certain purchase price adjustments.

How long could the arbitration proceedings take for Bombardier?

The arbitration proceedings could last several years.

Why will Bombardier limit its comments on the arbitration?

Bombardier will limit comments due to confidentiality obligations associated with the arbitration.