Wheels Up consulting Bankruptcy Advisors
#1
Gets Weekends Off
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Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
Wheels Up consulting Bankruptcy Advisors
https://www.ainonline.com/aviation-n...ource=hs_email
-CNBC is saying after an additional 21% stock price drop the company is consulting bankruptcy advisors
-Warren Buffet says clients who prepaid for block hours at WU are "going to be disappointed"
-Lawsuits are being filed over the restatement of 2022 financial results
-Kenny Dichter is receiving a VERY nice exit package. Keeps getting his $80K/month salary for the next 2 years, an immediate lump sum payment of $3M, 100 hours of flight time in WU aircraft (a questionable benefit at this point), and some stock options.
-CNBC is saying after an additional 21% stock price drop the company is consulting bankruptcy advisors
-Warren Buffet says clients who prepaid for block hours at WU are "going to be disappointed"
-Lawsuits are being filed over the restatement of 2022 financial results
-Kenny Dichter is receiving a VERY nice exit package. Keeps getting his $80K/month salary for the next 2 years, an immediate lump sum payment of $3M, 100 hours of flight time in WU aircraft (a questionable benefit at this point), and some stock options.
#2
Gets Weekends Off
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Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
Video Review of WU's Problems
https://youtu.be/sBhpqZFYICQ
The video is embedded in this article in case it won't load directly:
https://bjtonline.com/business-jet-n...ource=hs_email
Good 14 minute overview of the current WU situation with reporter Mark Huber who has closely followed the company. His opinion is WU will be out of money in 3.5 months and will have to file bankruptcy.
He thinks the customers who have pre-paid for a bunch of block hours will wind up getting less than 10 cents on the dollar. Customers do have an option to use WU block hours to buy 1st class tickets on Delta and the reporter says this should make Delta very nervous.
The video is embedded in this article in case it won't load directly:
https://bjtonline.com/business-jet-n...ource=hs_email
Good 14 minute overview of the current WU situation with reporter Mark Huber who has closely followed the company. His opinion is WU will be out of money in 3.5 months and will have to file bankruptcy.
He thinks the customers who have pre-paid for a bunch of block hours will wind up getting less than 10 cents on the dollar. Customers do have an option to use WU block hours to buy 1st class tickets on Delta and the reporter says this should make Delta very nervous.
#3
On Reserve
Joined APC: Feb 2014
Position: B767, Captain
Posts: 14
https://www.ainonline.com/aviation-n...ource=hs_email
-CNBC is saying after an additional 21% stock price drop the company is consulting bankruptcy advisors
-Warren Buffet says clients who prepaid for block hours at WU are "going to be disappointed"
-Lawsuits are being filed over the restatement of 2022 financial results
-Kenny Dichter is receiving a VERY nice exit package. Keeps getting his $80K/month salary for the next 2 years, an immediate lump sum payment of $3M, 100 hours of flight time in WU aircraft (a questionable benefit at this point), and some stock options.
-CNBC is saying after an additional 21% stock price drop the company is consulting bankruptcy advisors
-Warren Buffet says clients who prepaid for block hours at WU are "going to be disappointed"
-Lawsuits are being filed over the restatement of 2022 financial results
-Kenny Dichter is receiving a VERY nice exit package. Keeps getting his $80K/month salary for the next 2 years, an immediate lump sum payment of $3M, 100 hours of flight time in WU aircraft (a questionable benefit at this point), and some stock options.
#4
I found the interview very compelling. I wonder about the customer demographic for WU and to what degree that may be indicative of a Potemkin village type economic situation, highlighted by the degree to which our society continues to exercise large inelasticity of demand in the face of very high inflation, so long as their credit lines are floated. WU going into BK may be one of many upcoming canaries in the much anticipated headwinds of a late 2023 economic slow down.
I don't know about the Delta angle. I can't see those contracts being worth a hill of beans once the BK filing is made. That's the point of the filing in the first place. I don't think DL is worried about it frankly, certainly not to feel compelled to infuse the company, though I'm not privy to the details of those block purchase contracts.
I don't know about the Delta angle. I can't see those contracts being worth a hill of beans once the BK filing is made. That's the point of the filing in the first place. I don't think DL is worried about it frankly, certainly not to feel compelled to infuse the company, though I'm not privy to the details of those block purchase contracts.
#5
Gets Weekends Off
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Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
"Jet It" Fractional just suddenly shut down and laid off all employees. Honda Jet owners are screwed, many of the jets are locked in hangers waiting for liens to be cleared. They'll take major losses on their shares. This can't give WU customers a warm fuzzy.
I found the interview very compelling. I wonder about the customer demographic for WU and to what degree that may be indicative of a Potemkin village type economic situation, highlighted by the degree to which our society continues to exercise large inelasticity of demand in the face of very high inflation, so long as their credit lines are floated. WU going into BK may be one of many upcoming canaries in the much anticipated headwinds of a late 2023 economic slow down.
I don't know about the Delta angle. I can't see those contracts being worth a hill of beans once the BK filing is made. That's the point of the filing in the first place. I don't think DL is worried about it frankly, certainly not to feel compelled to infuse the company, though I'm not privy to the details of those block purchase contracts.
I don't know about the Delta angle. I can't see those contracts being worth a hill of beans once the BK filing is made. That's the point of the filing in the first place. I don't think DL is worried about it frankly, certainly not to feel compelled to infuse the company, though I'm not privy to the details of those block purchase contracts.
#6
Gets Weekends Off
Thread Starter
Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
WU Stock Plunges on BK Rumors
They already did a 10-1 stock split to avoid delisting. That got the stock to over $3. Now it's dropped 60% ($3.13 to $1.24) on rumors WU was in talks with a law firm that specializes in Bankruptcy restructuring. Trading in shares was briefly halted.
Delta has a big stake in WU and should they step in and assume control they'll be on the hook for $1B in pre-paid flight hours.
https://www.ainonline.com/aviation-n...ource=hs_email
Delta has a big stake in WU and should they step in and assume control they'll be on the hook for $1B in pre-paid flight hours.
https://www.ainonline.com/aviation-n...ource=hs_email
#7
Gets Weekends Off
Thread Starter
Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
WU Execs get Huge Pay Raises
https://www.ainonline.com/aviation-n...lNbSgvMJp9WrIw
Huge pay raises and stock options to the top execs at Wheels Up. And at a time when they're consulting bankruptcy advisors.
Huge pay raises and stock options to the top execs at Wheels Up. And at a time when they're consulting bankruptcy advisors.
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