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UPDATE 1-Bombardier extends period to seek bondholder consent after breach claim

(Adds detail on the time period extension, background)

May 12 (Reuters) - Bombardier said on Wednesday it would extend the time to get bondholders’ consent to amend terms on certain bond issues, following claims that the company’s recent asset sales breached certain covenants surrounding some of its notes.

Earlier this month, the company said it would launch consent solicitations over outstanding notes or debentures, after claims by an unnamed bondholder that its asset sales breached certain covenants under the indenture governing the 2034 notes.

The global business jet maker said on Wednesday that while it had received the required consent from holders of certain tranches of its outstanding senior notes or debentures, it extended the expiration date for some other notes to May 13 and some debentures to May 18.

Montreal-based Bombardier has emerged as a pure-play business jet maker after divesting assets, including its transportation business, to pay down debt and boost earnings.

Bombardier’s chief executive, analysts and other bondholders had been optimistic that the vote would go in favor of consent. (Reporting By Allison Lampert in Montreal, Maiya Keidan in Toronto and Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli and Maju Samuel)

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