It looks like Canadian taxpayers and workers aren’t the only people Bombardier CEO Alain ‘Bailout’ Bombardier has managed to anger this week.
With Canadians already outraged at Bailout Bellemare – who presides over a company that has been repeatedly bailed out by Canadian taxpayers yet just slashed 3000 Canadian jobs – Bombardier investors don’t seem too happy either.
A recent report details how Bailout Bellemare tried to push an optimistic message at a recent investor confidence.
But people didn’t buy into that message.
Last week, Bombardier announced that they would need to use one-time proceeds from selling a facility to hit their cash-flow targets, which severely impacted confidence. In just the last week, Bombardier has lost 30% of its market value.
Their Class B stock plunged 10%, and their credit risk has surged, with the cost of insuring against default up from about 350 basis points at the start of the month, to 545 basis points now.
Despite repeated bailouts, Bombardier has a whopping $9.5 billion in debt.
According to Bloomberg, “The company’s $1 billion in bonds due 2024 have dropped 7 percent to 94 cents on the dollar since Nov. 7, the worst performer among U.S. dollar bonds in Canada, according to the Bloomberg Barclays Global Corporate bond index. They fell 1.5 percent Wednesday to the lowest level since they were issued one year ago.”
With this kind of failure and collapse of confidence, how much longer until Bailout Bellemare and the awful Bombardier Board come begging to Canadian taxpayers for even more money?