Wheels Up (WUP, Teterboro) has secured USD30 million in additional financial support from shareholder Delta Air Lines (DL, Atlanta Hartsfield Jackson), on top of a secured promissory note of USD15 million secured earlier this month, according to a recent filing with the US Securities and Exchange Commission.
Wheels Up disclosed the companies since twice agreed to amend the promissory note: First to add USD10 million, which Wheels Up received on August 16; and again to add another USD20 million, bringing total support from Delta to USD45 million.
In addition, the company also received lender forbearance until August 23, 2023, of outstanding principal and interest payments on a USD260 million equipment loan received in October 2022, guaranteed by portions of its aircraft fleet.
In a rescue deal announced on August 8, Wheels Up offered the new lenders Certares Management LLC and Knighthead Capital Management LLC up to 95% of its stock in exchange for providing a turnaround investment of USD500 million, consisting of a USD400 million loan and a USD100 million liquidity facility from Delta.
The company reported losses of USD161 million and USD335 million in revenue during 2Q23, along with a decrease in available cash from USD363 million to USD152 million.
