P&WC to repay $1-billion government debts early
Aircraft engine maker Pratt & Whitney Canada Corp. is clearing its debts with taxpayers, striking new terms with Canada and Quebec to repay early more than $1-billion in loans owing to the two levels of government in a move that has potential repercussions for Bombardier Inc.
January 7, 2016 By The Globe and Mail
Hartford, Conn.-based United Technologies Corp. (UTC), Pratt’s parent, disclosed in a regulatory filing Wednesday that Pratt & Whitney Canada (PWC) signed amendments to existing loans agreements with the governments on Dec. 30. Records show the engine manufacturer has historically been the largest beneficiary by far of federal support for research and development.
The Montreal-area company will make four annual payments totalling $965-million (U.S.) – $1.4-billion (Canadian) at current exchange rates – starting this month to “fully settle and terminate” its previous contractual obligations related to royalties to the two governments, according to the filing. That means PWC will now no longer have to pay royalties to the lenders based on its engine sales. | READ MORE