As SNC Cuts Forecast, Trudeau Faces Probe Over Push for Deal
- Company’s lender agreed to temporily relax loan covenenants
- SNC to resolve dispute with mining client in arbritration
Photographer: Simon Dawson/Bloomberg
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SNC-Lavalin Group Inc., the engineering firm at the center of a controversy that’s embroiled Prime Minister Justin Trudeau, issued its second profit warning in as many weeks.
The Canadian company said Monday it failed to reach an agreement with a client in a dispute over a mining project in Latin America, slashing its profit forecast by more than 40 percent for the year and putting its shares on track for the lowest close in a almost a decade. Its 2020 bonds were also trading at the widest since they were issued in 2017.