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On27 July, Debtwire held an online discussion on VistaJet focusingon theMalta domiciled aviation company’s financial position, the challenges it faces as itramps up operations on a larger fleet, and the optionality it has to overcome alooming liquidity gap.
The challenges VistaJet faces stem from its aggressive expansion schedule over the last two years that increased its fleet to 71 aircrafts. While EBITDA is growing, the jump is not fast enough for comfort while debt levels remain high. The company’s liquidity is constrained due to the buying spree to fund the expansion and it could struggle to meet amortisation payments and other expenses this year.
Investors are keen to see whether VistaJet is able to grow into its capital structure, which comprises USD 1.2bn in secured asset financing and USD 300m 7.75% unsecured notes due 2020.
VistaJet has pulled some levers already - it raised USD 30m in equity in 1Q17 and pushed out cUSD10m in amortisation payments. But risks and concerns remain so many investors are waiting on the sidelines for more clarity on the company’s future before getting involved.
The webinar was led by Marion Halftermeyer, a restructuring reporter with Debtwire Europe and featured comments from Alexander Gladstone, a restructuring reporter with Debtwire North America.
Meaghan Wells, head of investor relations at VistaJet, was a featured guest on the webinar. Wells joined to provide further context on certain questions in order to help participants’ understanding. However, she did not take any questions directly.
Senior analyst Bobby Kabli with Debtwire Europe provided listeners with an overview of the key metrics and concerns for evaluating the company.
Dawn Grocock, legal analyst with Debtwire Europe, and Richard Goldman, senior legal content specialist with Debtwire North America, explained the in-court restructuring options for VistaJet should it ever come pursue a UK Scheme of Arrangement or Chapter 11 process.