airBaltic Embarks on Financial Overhaul with Chapter 11 Filing

Latvia's airBaltic has filed for Chapter 11 bankruptcy protection in New York to undergo a financial restructuring. The airline aims to alleviate its debt while maintaining continuous flight operations. It has secured €350 million in debtor-in-possession financing from various lenders to support its restructuring process.

Latvia's national airline, airBaltic, announced on Monday that it has filed for Chapter 11 bankruptcy protection in New York. This decision marks a strategic move aimed at financial restructuring to alleviate its debt burden.

The Latvian government holds a significant ownership stake in airBaltic, and the airline emphasized that its flight operations will proceed without disruption. Ticket reservations, customer service, and all scheduled flights will remain unaffected by the court-supervised restructuring process.

AirBaltic disclosed that it has secured €350 million in financing from lenders such as Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management. This funding is crucial for sustaining operations throughout the restructuring phase.