Metrolinx is taking new legal action amid delays by Bombardier to deliver light rail vehicles for the Eglinton-Crosstown LRT.
The agency has filed a formal notice of intent to cancel a contract worth $770 million.
Metrolinx Spokesperson, Anne Marie Aikins, says it's simply the next step available to them through the contract.
She says there are concerns about quality and manufacturing and that they're still waiting for a prototype vehicle that was supposed to arrive two years ago.
However, this doesn't mean the deal is dead.
"We are up in Thunder Bay, doing a walk around this week," Aikins says. "We're continuing to work with Bombardier and hopeful that we can get things moving."