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.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.