Triumph Group and the Montreal-based parent of Wichita’s Learjet have reached a settlement over the manufacture of the wing of Bombardier’s new Global 7000 business jet.
The Pennsylvania-based aircraft supplier said Wednesday in advance of its first quarter 2017 earnings that the settlement “resolves all outstanding commercial disputes between them, including all pending litigation, related to the design, manufacture and supply of wing components for Bombardier’s Global 7000 business aircraft.”
“We are pleased with the settlement with Bombardier regarding our Global 7000 program contract, which we believe is mutually beneficial,” Daniel Crowley, Triumph’s president and chief executive officer, said in a news release. “Our Aerospace Structures business has been dedicated to supporting Bombardier on this critical program since entering into the contract and remains committed to the program’s continued success as the aircraft transitions from flight testing to entry into service.”
Triumph said it would not disclose the terms of the settlement, which “resets the commercial relationship” between it and Bombardier.
In January, Triumph Group filed a lawsuit against Bombardier, alleging it wasn’t paid what it is owed for work on the Global 7000 business jet — allegations that Bombardier denied.
Then in early May, Triumph filed with the Securities and Exchange Commission an amended credit agreement that "also provides the Company's Vought Aircraft Division ... with the option, if necessary, to commence voluntary insolvency proceedings.” Vought is the division within Triumph Aerostructures LLC that manufactures the wing of Bombardier’s newest, biggest and longest-range business jet that is undergoing flight testing in Wichita.
Analysts such as J.P. Morgan’s Seth Seifman said in notes to investors on Wednesday that they think Wednesday’s settlement agreement “should remove the risk of (Triumph Aero)Structures insolvency.”