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Bombardier Seeks U.K. Relief on Train Delivery Timetable

Bombardier Seeks U.K. Relief on Train Delivery Timetable

(Bloomberg) -- Bombardier Transportation is seeking to ease terms on U.K. train contracts after social-distancing measures slowed production, according to a person familiar with the matter.

Discussions with the government are ongoing as the Derby, England-based arm of Canada’s Bombardier Inc. looks to avoid paying penalties for the late delivery of trains, the person said asking not to be identified as the discussions are confidential.

The trainmaker said in a statement it wants to “offset the short-term costs of the virus” but is not seeking “taxpayer support.” The Times newspaper first reported the negotiations.

The government has “put in place unprecedented levels of support to help businesses get through this crisis,” a treasury spokesperson said in an emailed response, declining to discuss individual cases.

Bombardier, which is selling its rail business to French train maker Alstom SA, has contracts to build trains for multiple rail franchises in the U.K. as well as London’s long-delayed Crossrail subway line.

©2020 Bloomberg L.P.