The company – which was at the centre of the massive PMO Scandal – is struggling.
As SNC-Lavalin continues to struggle, Quebec’s Economy Minister is ruling out a bailout for now, but leaving the door open to bailing the company out down the road.
“Despite the obvious operational problems…I don’t see the need for the Quebec government to intervene at the financial level,” said Pierre Fitzgibbon.
However, as noted by BNN Bloomberg, a bailout in the future is not being ruled out:
“If a transaction were required to save it from a hostile takeover, we could intervene,” said Fitzgibbon.
SNC-Lavalin is facing serious financial challenges, including lower profit-projections, and numerous legal woes linked to bribery and corruption investigations.
SNC-Lavalin’s shares have fallen 62% in the past year, and the company recently revealed that they would be taking a $1.9 billion charge.
The remarks from the Quebec Economy Minister follow statements from Caisse de dépôt et placement du Québec – the largest investor in SNC-Lavalin, who said the company’s performance is “a cause of growing concern.”
The company has also found themselves ensnared in political scandals, from the allegations of improper pressure applied to the former Attorney General (allegedly by Trudeau and his cronies) to get a deferred prosecution agreement for SNC-Lavalin, to reports of large-scale illegal donations being made to federal political parties – with the lions share going to the Liberals.
SNC-Lavalin also recently lost their bid to avoid a trial on accusations of fraud and bribery in Libya.
Spencer Fernando
Photo – YouTube
