Jet charter firm Wheels Up in talks with lenders amid cash crunch -WSJ (updated)

Wheels Up Experience

12/08/2023 01:44

(Adds Bain Capital decline to comment in paragraph 3)
       Aug 11 (Reuters) - Private jet company Wheels Up
Experience  UP.N  is in talks with lenders about a debt
restructuring while exploring other options to avoid bankruptcy,
the Wall Street Journal reported on Friday.
    The company, which offers flight charters, has recently
started discussions with Bain Capital and MSD Capital, holders
of more than $260 million in equipment financing notes, after
missing recent debt payments, the report added, citing people
familiar with the matter.
    Bain Capital declined to comment while Wheels Up and MSD
Capital did not immediately respond to a request for comment on
the report.
    The New York-based company on Wednesday said there was
"substantial doubt" about its ability to continue operations,
even as it disclosed short-term funding from Delta Air Lines
 DAL.N .
    Delta said in a statement that it was providing a short-term
capital infusion in the form of a secured promissory note to
Wheels Up, which is pursuing strategic partnerships. It did not
disclose the amount of funding.
    Wheels Up has taken a slew of restructuring measures this
year including job cuts and management changes as private jet
traffic, which soared on demand from wealthy travelers during
the pandemic, has slowed.

 (Reporting by Mrinmay Dey in Bengaluru; Editing by Cynthia
Osterman and Diane Craft)
 ((Mrinmay.Dey@thomsonreuters.com;))