Loss-making Wheels Up to give up 95% stake to lenders for $500 mln (updated)

Wheels Up Experience

15/08/2023 15:42

(Recasts paragraph 1 with stake sale, background in paragraph
2)
       Aug 15 (Reuters) - Money-losing private jet charter
company Wheels Up Experience  UP.N  said on Tuesday it would
give up 95% of its common stock in return for $500 million in
funds from Delta Air Lines  DAL.N  and two investment firms.
    The company had said on Monday it was considering its
options, including filing for bankruptcy protection.
    As part of a non-binding agreement, the funding would
comprise a $400 million term loan and a $100 million liquidity
facility from Delta. The investment firms are Certares
Management and Knighthead Capital Management.
    Wheels Up, which charters planes by the hour, has taken a
slew of restructuring measures this year, including job cuts and
management changes, as demand for private jets from wealthy
travelers slowed after the pandemic.
    Trading in Wheels Up shares were halted in morning trade.

 (Reporting By Allison Lampert in Montreal, additional reporting
by Abhijith Ganapavaram in Bengaluru; Editing by Arun Koyyur)
 ((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters
Messaging: allison.lampert.reuters.com@reuters.net))