Jet charter firm Wheels Up in talks with lenders amid cash crunch -WSJ
(Reuters) -Private jet company Wheels Up Experience is in talks with lenders about a debt restructuring while exploring other options to avoid bankruptcy, the Wall Street Journal reported on Friday.
The company, which offers flight charters, has recently started discussions with Bain Capital and MSD Capital, holders of more than $260 million in equipment financing notes, after missing recent debt payments, the report added, citing people familiar with the matter.
Bain Capital declined to comment while Wheels Up and MSD Capital did not immediately respond to a request for comment on the report.
The New York-based company on Wednesday said there was «substantial doubt» about its ability to continue operations, even as it disclosed short-term funding from Delta Air Lines (NYSE:DAL).
Delta said in a statement that it was providing a short-term capital infusion in the form of a secured promissory note to Wheels Up, which is pursuing strategic partnerships. It did not disclose the amount of funding.
Wheels Up has taken a slew of restructuring measures this year including job cuts and management changes as private jet traffic, which soared on demand from wealthy travelers during the pandemic, has slowed.
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