Investment Structures

Restructuring Transactions

Vx invests in aircraft operated by airlines which are undergoing restructuring. During such a restructuring, which might include bankruptcy, an airline’s fleet and associated financings also will be restructured. In addition, the airlines debt and leases often change hands as passive investors exit and hands-on investors like Vx enter. Vx calls on lessors and lenders throughout the world to purchase these investments. Once owned, Vx will manage the transactions through the restructuring process. During this process, Vx works closely with all of the involved parties including the airline, the equity, trustees, advisors and associated legal counsel. Vx attempts to find a consensual solution for all parties and has forged many industry relationships which enhance the firm’s ability to originate and manage its investments. Once stabilized, the transaction is generally offered for sale or refinanced.

Remarketing Transactions

Vx invests in aircraft where near-term remarketing will be required. Remarketing is the process of moving an aircraft from one airline to another. In remarketing transactions, Vx purchases from investors who are not interested or equipped to undergo this process. Vx then identifies, analyzes, negotiates and documents a new leasing transaction. Throughout the process, Vx professionals employ their skill and experience, in conjunction with outside vendors, to accomplish a multitude of tasks which comprise a successful remarketing project. In some cases, the asset will require substantial modification to allow it to be employed in its “highest and best” capacity. The most extreme example would be the conversion of an airplane from passenger-to-freighter configuration. Vx personnel have had extensive experience managing cargo conversions as well as the full scale of lesser remarketing projects. Once remarketed, the transaction is generally offered for sale or refinanced.

Traditional Leveraged Operating Leases

Vx invests in traditional operating leases for its own account and for partners. These transactions normally involve attractive aircraft including a wide range of Boeing and Airbus models. In addition, these aircraft are normally subject to operating leases with airlines that are successful in their market segment somewhere in the world. In order to obtain its threshold returns in traditional operating leases, Vx leverages the transactions utilizing non-recourse term loans. Vx principals have long experience in structuring and managing leveraged operating lease transactions and maintain relationships with the primary lenders in the aviation industry. These aircraft are normally held by Vx as long term investments.