Bombardier Inc is to face a law suit brought by three hedge funds – Antara Capital Master Fund, Corbin Erisa Opportunity Fund and Corbin Opportunity Fund – over an alleged default by the jet maker on some of its bonds when it sold off business units, according to a report by Bloomberg.
On Tuesday, New York Supreme Court Justice Andrew Borrok denied Bombardier’s request to dismiss the sui, which alleges that company violated debt covenants when it sold its rail business, regional jet programme and aerostructures divisions in 2020 and 2021.
The trustee for the bonds in question had also sought to throw out the suit.
The report cites an email statement from Bombardier as confirming that the company “stringy disagrees with the cout ruling” and is “planning to appeal”.
