Financial health of Bombardier questioned after federal loan

Federal loans to Bombardier amounting to $372.5 million have renewed calls for more financial transparency from the company as investors struggle to understand its shifting value.

On Tuesday, the federal government announced the interest-free loans for the aerospace giant would be handed out in installments over a four year period.

Despite the surge of funds, some investors aren't sure it's time to buy into Bombardier.

David Baskin, president ofBaskin Wealth Management, thinks it's better to wait before buying stock in the company.

He said investors should be waiting to see the company's financial results for the period ending Dec. 31, 2016, before they invest. He cited the posted operational losses of the past reported periods.

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Federal Transport MinisterMarc Garneau spoke for the soundness of Bombardier's financial state, citing global restructuring efforts and new CSeries orders from companies like Air Canada.

Baskin said that without seeing Bombardier's financial results the company's recent orders don't mean as much as they appear to.

"We know they've gotten orders but we don't know if those orders were at good prices," Baskin told CBC Montreal's Daybreak.

Keeping jobs in Canada

Both Ottawa and Quebec contributed to the government loans, which has some people wondering if taxpayer money will ensure the jobs stay in Canada.

Dave Chartrand from the international association for machinists and aerospace workers said he was disappointed that the loan didn't come with a minimum expectation for job creation in Canada.

"When they do give loans we hope they attach it to a certain level of employment," Chartrand said.

Last February, the company announced it would be laying off 7,000 workers, mainly in Canada and Europe.

• Federal loan to Bombardier not enough, say critics