Loss-making Wheels Up to give 95% stake to lenders for $500m

Money-losing private jet charter company Wheels Up Experience said on Tuesday it would give up 95% of its common stock in return for a $500m lifeline from Delta and two investment firms. The company said on Monday it was considering its options, including filing for bankruptcy protection. It also reported a second-quarter net loss that widened from a year ago. 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. As part of a non-binding agreement, the funding would comprise a $400m term loan from partners Delta and investment firms Certares Management and Knighthead Capital Management. The US carrier would provide a $100m liquidity facility. "The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers," Delta CEO Ed Bastian said.<br/>