HomeIndustriesWheels Up in Talks With Lenders Amid Cash Crunch

Wheels Up in Talks With Lenders Amid Cash Crunch

U.S. charter flight company Wheels Up is engaging with lenders over a debt restructuring agreement and other rescue options as it seeks to avoid bankruptcy. The private jet company is in talks with Bain Capital and MSD Capital after missing debt repayments, sources familiar with the matter revealed.

Last Wednesday, representatives from Wheels Up revealed that the company is doubtful of its ability to continue operations despite securing short-term funding from major U.S. carrier Delta Airlines. The Atlanta, Georgia-based airline revealed that its capital infusion in Wheels Up came in the form of a secured promissory note. Neither company disclosed the funding amount.

In addition to securing funding from Delta, Bain Capital, and MSD Capital, Wheels Up has implemented several cost-cutting measures in an effort to improve its financial situation. These include management changes, job cuts, and changes to private jet traffic, which soared during the pandemic and have since dropped in demand.

Marriott Projects Revenue Growth Amid Resilient Travel Demand

Marriott International forecasted on Wednesday that 3% to 6% growth in its annualized global revenue per available room for the two years ending 2025 as the...

Dollar and Stocks Steady as Bonds Ease From Record Highs

The U.S. dollar and stocks in New York stabilized on Wednesday, while U.S. Treasury Yields retreated from their 16-year high, easing pressure on the...

New Home Sales Plummet in August

Sales of new U.S. single-family homes plunged in August as the 30-year mortgage rate rose past 7%, thereby discouraging would-be buyers. According to data...