While Bombardier became a pure-play business aviation company with the sale of its transportation business to Alstom in January 2021, the Montreal manufacturer is engaged in a protracted legal entanglement over that deal. That includes a request by rail giant Alstrom to seek arbitration over certain contractual provisions.

Alstom confirmed it had requested arbitration before the International Chamber of Commerce over what it believes is a breach of provisions in the sale and purchase agreement it had signed with Bombardier in September 2020. Alstom said it was not commenting further on the issue, citing confidentiality of the arbitration proceedings.

Bombardier acknowledged it had received notice of the arbitration and said it believes it “has good grounds to defend itself against Alstom’s claim and intends to do so vigorously.” In addition, Bombardier also plans to challenge certain purchase price adjustments that resulted in lower sale proceeds than initially estimated.

Like Alstom, Bombardier said it would not comment further on the proceeding because they are subject to confidentiality obligations. However, Bombardier added that arbitration could last several years.

Bombardier is also involved in a lawsuit brought by certain shareholders alleging the business jet maker was in breach of covenants with the sale of various assets, including its transportation business. In late March, Bombardier asked the New York Supreme Court to dismiss this case.