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The company said on Monday it was considering its options, including filing for bankruptcy protection. Wheels Up also reported a second-quarter net loss that had widened from a year earlier.
As part of a non-binding agreement, the funding would comprise a $400 million term loan from partners Delta and investment firms Certares Management and Knighthead Capital Management. The U.S. carrier would provide a $100 million liquidity facility.
“The partnership will create new opportunities for Wheels Up to drive strategic, operational and financial improvements for its customers,” Delta chief executive Ed Bastian said in a statement.
Wheels Up, which charters planes by the hour, has taken a slew of restructuring measures this year, including job cuts and management changes, as demand for private jets from wealthy travelers slowed after the pandemic.
Trading in Wheels Up shares were halted in midday trade.
