Private jet company to which Muscat gave a €1 million donation in taxpayers’ money is in serious financial trouble

The report below is from the Beard Group’s bankrupt.com and is dated January this year.

Now we have a better understandingwhich makes it more shocking still – of why Joseph Muscat instructed the Tourism Ministry to give VistaJet €1 million from the Malta Tourism Authority’s budget, a shocking donation, described as a “sponsorship”, made without the knowledge or approval of the Malta Tourism Authority board.

This is how bad it is: the Prime Minister using €1 million of taxpayers’ money to help out Thomas Flohr of VistaJet. What kickbacks did he and his henchman Keith Schembri get on that €1 million gift? Because they won’t have done it just because Muscat likes Flohr’s face.

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M A L T A

VISTAJET GROUP: S&P Lowers CCR to ‘B-‘, Outlook Negative

The negative outlook reflects the risk of deterioration in VistaJet’s liquidity if the company’s high expansion rate does not translate into the strong cash flow generation over the next few quarters that S&P currently anticipates, and if the company does not raise additional liquidity sources to avert a potential shortfall while paying increasing financial leasing expenses.

Downside scenario

S&P could downgrade VistaJet if its efforts to restore its liquidity are not successful and if S&P considers its liquidity sources-to-uses ratio will fall materially below 1.0x, constituting a likely default risk within the next 12 months.  

In particular, S&P thinks this might happen if utilization and yields don’t improve materially and potential equity injections are stalled.  S&P could also lower the rating if the financial covenants appeared to be breached and the company was unlikely to remedy such breaches.

Upside scenario

S&P could revise the outlook to stable if VistaJet’s liquidity position stabilizes, owing to successful measures by management to boost liquidity sources accompanied by a significant improvement to cash flow generation.