Update 12pm: Adds company statement, confirmation.
Wheels Up (NYSE:UP) will cede control to investors including Knighthead Capital Management and Certares Management as part of a new financing that will avoid a bankruptcy filing for the private jet firm. Wheels Up has been halted for news pending.
Affiliates of Knighthead and Certares, along with Delta Air Lines (DAL) and other investors, agreed to provide $500 million in new funding and will receive 95% of Wheels UP’s equity, according to a statement.
Delta, which recently provided short-term financing, is providing $150 million of a new $400 million term loan and $100 million credit line. Wheels Up also announced that Delta (DAL) Chief Financial Officer Dan Janki will join the Wheels Up (UP) board as Chairman. Ravi Thakran will transition back to director from his role as Executive Chairman.
“The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers in the months and years ahead,” Delta CEO Ed Bastian said in the statement. “Delta’s unmatched expertise in premium travel, customer loyalty, corporate sales, operational reliability and aircraft maintenance, combined with Certares’ and Knighthead’s experience and global reach, are expected to speed Wheels Up on its path to profitability.”
The news comes after a report late Friday from WSJ that Wheels Up (UP) was in talks with lenders about a debt restructuring while exploring other options to try to avoid a bankruptcy filing. The on-demand private jet company has recently started talks with Bain Capital and MSD Capital, large holders of more than $260 million in equipment financing notes,
The latest report comes after Wheels Up (UP) on Wednesday that there is “substantial doubt” about its ability to continue as a “going concern” and announced it was unable to file its Q2 results, sending its shares tumbling 35%.
The private jet operator also said on Wednesday that it is actively involved in discussions around strategic business partnerships for the company. Wheels Up (UP) announced that Delta (DAL) has provided a short-term capital infusion to the company.
Shares of Wheels Up (UP) have dropped 86% this year, at least partly because the founder and former CEO stepped down in May. Wheels Up stock has dropped more than 95% since it went public through a de-SPAC in July 2021.
CNBC earlier reported on Tuesday that Wheels Up (UP) would receive funding to avoid a bankruptcy. Bloomberg earlier reported details of the financing.
Tense diplomatic relations may not impact trade, investment ties between India, Canada: Experts
NEW DELHI: The tense diplomatic relations between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations, according to experts. Both India and Canada trade in complementary products and do not compete on similar products.
“Hence, the trade relationship will continue to grow and not be affected by day-to-day events,” Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said.
Certain political developments have led to a pause in negotiations for a free trade agreement between the two countries.
On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing anti-India activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there.
India on Tuesday announced the expulsion of a Canadian diplomat hours after Canada asked an Indian official to leave that country, citing a “potential” Indian link to the killing of a Khalistani separatist leader in June.
Srivastava said these recent events are unlikely to affect the deep-rooted people-to-people connections, trade, and economic ties between the two nations.
Bilateral trade between India and Canada has grown significantly in recent years, reaching USD 8.16 billion in 2022-23.
India’s exports (USD 4.1 billion) to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada’s exports to India (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products.
On investments, he said that Canadian pension funds will continue investing in India on grounds of India’s large market and good return on money invested.
Canadian pension funds, by the end of 2022, had invested over USD 45 billion in India, making it the fourth-largest recipient of Canadian FDI in the world.
The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology, and financial services.
Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the present frosty relations between India and Canada are certainly a cause for concern.
“However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations,” Saraf said.
He added that even with China, India has acrimonious relations but bilateral trade continues to remain healthy.
“In fact, bilateral trade is an effective tool to improve political relations. India must make special efforts to increase our bilateral trade with Canada,” Saraf said.
India and Canada have a strong education partnership. There are over 200 educational partnerships between Indian and Canadian institutions.
In addition, over 3,19,000 Indian students are enrolled in Canadian institutions, making them the largest international student cohort in Canada, according to GTRI.
According to the Canadian Bureau for International Education (CBIE), Indian students contributed USD 4.9 billion to the Canadian economy in 2021.
Indian students are the largest international student group in Canada, accounting for 20 per cent of all international students in 2021.
Benefits of educational partnerships are mutual and hence the current situation may have no impact on the relationship, Srivastava said.
Apple supplier Foxconn aims to double India jobs and investment
Apple supplier Foxconn aims to double its workforce and investment in India by next year, a company executive said on Sunday.
Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
V Lee, Foxconn’s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.
He did not give more details.
Foxconn already has an iPhone factory employing 40,000 people in the state of Tamil Nadu.
In August, the state of Karnataka said the firm will invest US$600 million for two projects to make casing components for iPhones and chip-making equipment.
The company’s Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: “several billion dollars in investment is only a beginning”.
Taiwan election: Foxconn’s Terry Gou taps star-powered running mate
Last month, Foxconn’s billionaire founder Terry Gou said he would run for the Taiwanese presidency in next year’s election, as an independent candidate.
He said the ruling and independence-leaning Democratic Progressive Party (DPP) was unable to offer a bright future for the island and left Foxconn’s board following his decision to run.
The firm operates the world’s largest iPhone plant, in the city of Zhengzhou in Henan province.
Foxconn to double workforce, investment in India by ‘this time next year’
Post-ABC poll: Biden faces criticism on economy, immigration and age – The Washington Post
Moneris says widespread credit and debit card processing outage resolved – Global News
MPs hope Zelenskyy's visit counters creeping fatigue over cost of war support – CBC.ca
Silver investment demand jumped 12% in 2019
Search for life on Mars accelerates as new bodies of water found below planet’s surface
Iran anticipates renewed protests amid social media shutdown
News16 hours ago
India-Canada news: How the visa office suspension affects travellers
News17 hours ago
Why is rent going up faster in Brampton than everywhere else in Canada?
Business19 hours ago
Vote “No” to Unifor’s sellout Ford Canada contract! Build rank-and-File committees to fight for a North America-wide strike against the Detroit Three!
News15 hours ago
India-Canada news LIVE updates: Justin Trudeau says evidence was shared ‘many weeks ago’
News14 hours ago
Canada is still processing visas for Indian nationals
Art22 hours ago
Opera House totem pole permanently removed from city’s art collection
Art22 hours ago
Can David Salle Teach A.I. How to Create Good Art?
Economy19 hours ago
Weak Euro-Area PMI Data Suggest Economy Facing Contraction