07:33 AM EDT, 07/02/2024 (MT Newswires) -- Bombardier (BBD-A.TO, BBD-B.TO) said Tuesday it expects its supply contracts to be maintained to the "highest standards of quality and performance". The company added it remains actively engaged with Spirit as part of ordinary course of business under existing contracts.

This comes after Bombardier over the holiday weekend reached an agreement to settle the lawsuit titled Antara Capital Master Fund LP, Corbin ERISA Opportunity Fund Ltd. and Corbin Opportunity Fund, L.P. v. Bombardier Inc., et al.

A statement noted the Lawsuit is pending in New York State Supreme Court, Commercial Division New York County since it was filed in January 2022. According to the statement: "The settlement will become effective following satisfaction of customary conditions which may take a few days. The settlement resolves the Lawsuit completely and avoids the distraction, expenses and uncertainty associated with any litigation. All defendants will be fully released without any admission of liability.

It added: "The settlement also contains a consent from plaintiffs, as beneficial holders of outstanding 7.45% Senior Notes due 2034, to the amendments of the indenture governing such notes entered into in 2021, including consent that the divestiture transactions referred to in the Lawsuit did not give rise to any default under the Indenture, and for the avoidance of doubt, a waiver of any alleged default under the Indenture in connection therewith."

Bombardier said the terms of the settlement agreement are confidential, and added the settlement is not material to the company's financial results or consolidated cash position. "While the company strongly believes the allegations in this case were without merit, it also believes that it is in the best interest of the Company and all its stakeholders to settle this lawsuit and concentrate on its core business operations."