From AIN:
Delta Air Lines Pumps Another $15 Million into Wheels Up
Wheels Up has tapped Delta Air Lines for another $15 million in short-term capital infusion, bringing its total indebtedness to the U.S. carrier to $60 million from funds received since August 8. The cash-strapped private aviation group revealed the transaction late Friday in a Form 8-K filed with the U.S. Securities and Exchange Commission. The need to seek additional cash from Delta suggests that Wheels Up continues to record large monthly operating losses.
On August 15, Wheels Up announced that Delta and investment firms Certares and Knighthood
would receive 95 percent of the company’s stock in exchange for a loan of $400 million plus a $100 million “liquidity facility” from Delta. In its latest quarterly financial statement, Wheels Up reported $161 million in losses and $335 million in revenue during the second quarter of this year while seeing its available cash erode from $363 million to $152 million—close to a $125 million minimum required by loan covenants.
Wheels Up shares have surged 50 percent in the last week, giving the company a market capitalization of $67 million. Over the last year, Wheels Up shares have shed 85 percent of their value, adjusted for a reverse stock split enacted by the company in June.