(Bloomberg) — Knighthead Capital Administration and personal fairness agency Certares Administration are elevating $1 billion for a brand new fund that might search to capitalize on a rebound in journey companies disrupted by the Covid-19 pandemic, in keeping with individuals with information of the plan.Knighthead, the funding firm led by co-founder Tom Wagner, will likely be equal companions with Certares within the enterprise, mentioned the individuals, who requested to not be named as a result of the plans aren’t public. The fund would take about 10 to 15 debt and fairness positions over a five-year interval.Representatives for Knighthead and Certares, each based mostly in New York, declined to remark.Knighthead is one among a number of funds in search of to benefit from market distortions attributable to the pandemic, which prompted governments worldwide to droop journey and order residents to remain at dwelling to struggle the virus.The quantity of travel-related debt buying and selling at distressed ranges swelled amid the lockdowns. For corporations within the Americas alone, distressed debt issued by airways, inns and leisure and transportation companies has elevated greater than five-fold to $28 billion since early March, information compiled by Bloomberg present.Knighthead, which has round $4.1 billion in property beneath administration, makes a speciality of event-driven distressed credit score and particular conditions throughout a broad array of industries.Certares, based in 2012 by former JPMorgan Chase & Co. dealmaker Greg O’Hara, was a part of a consortium that purchased a 50% stake in American Specific World Enterprise Journey in 2019.For extra articles like this, please go to us at bloomberg.comSubscribe now to remain forward with probably the most trusted enterprise information supply.©2020 Bloomberg L.P.