Private jet membership company Wheels Up Experience said Tuesday that it would receive up to $500 million in rescue financing from Delta Airlines and investors with turnaround experience in the travel and tourism industries, WSJ Pro Bankruptcy reported. With the new capital infusion Wheels Up, a startup that was founded on the idea of expanding access to private-jet ownership, has a path to averting bankruptcy, which the company has been exploring as one of its strategic options. Wheels Up said that a consortium of investors including Delta Airlines, Certares Management and Knighthead Capital Management agreed to provide a $400 million loan, while Delta will also provide an additional $100 million revolving credit facility. Lenders under the non-binding agreement announced Tuesday will receive newly issued common shares in Wheels Up to give them a 95% stake in the company. Wheels Up hasn’t turned a profit since it was founded in 2013 and has recently run low on cash, putting its survival as a going concern in doubt. Certares and Knighthead teamed up in the travel industry before, taking over Hertz Global Holdings in its bankruptcy in 2021.
