The article from the URL above:
Vista Global Financial Update (Uncorroborated)
I am a passionate believer in corroborating my numbers and published statements. For this article I haven't received secondary confirmation, so I am inviting Vista Global to contact me and provide verifiable evidence that contradicts the numbers I recently received about their full-year 2022 financial performance.
My source suggested that 2022 losses increased by 175% (YOY) to $139 million. In addition, the Vista Global group has current liabilities that exceeded their current assets by more than $1.4 billion, at the end of Q4 2022. Debt increased, dramatically, during 2022, leaving Vista Global with a debt to equity ratio that exceeded 23, a dramatic increase from less than eight, at the end of 2021.
Assuming these numbers are correct, from a hitherto reliable source, they point to Vista Global quickly transitioning from being a market leading branded charter and aircraft management company to becoming worryingly illiquid (euphemism), IMO. According to banking contacts, who are vastly more knowledgable than me about such matters, Vista Global may be at risk of breaching banking covenants that are tied to billions of dollars in asset-backed debt.
I’ve already written about the possibility that up to three large fleet operators face the threat of insolvency. Obviously, the used aircraft market would struggle (gross understatement) to absorb as many as 59 wholly-owned Challenger 300/350’s, 34 Global 5000/6000’s and 16 nearly new Global 7500’s.
Without appropriate pre-planning, any unexpected disruption of flight operations (another euphemism) could have a devastating impact on used aircraft values, industry-wide, aside from placing hundreds of unrelated asset-backed loans at risk.
My hopes are, firstly, that these numbers are wrong and that Vista Global have the necessary resources to remain solvent until their business becomes profitable, or secures additional resources, particularly given the tens of thousands of flights their customers have already contracted and paid for! Secondly, I hope that Bombardier, and the banks that have been financing Vista Global, are paying close attention and have back-stop plans prepared, in case of any unfortunate developments (yet another euphemism).
A collapse of Vista Global would be calamitous…for the entire industry, IMHO. I watched as Avantair unravelled, leaving their 55 Piaggio Avanti's parked-up across the US, many of which were impounded by local suppliers, who hadn't been paid. Avantair's share owners were left with almost nothing, by the end of bankruptcy proceedings.
I have been tracking vulnerable operators because of my unfortunate experiences (my final euphemism) with too many Avantair share owners! Hopefully, I'll receive comforting, and independently verifiable, statements from Vista Global that will allow me to publish a full retraction!