airBaltic Files for Chapter 11 With €350 Million Financing in Place

Latvia’s national airline airBaltic has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York to restructure its substantial debt and other long-term obligations while continuing to operate. The airline says flights, ticket validity, reservations, customer service and employee jobs will remain unaffected during the court-supervised process. airBaltic has secured a €350 million debtor-in-possession financing commitment from investment funds to support operations during the restructuring. The filing followed difficult negotiations with bondholders and uncertainty over a proposed €257 million emergency loan carrying a 25% interest rate, which Latvian officials viewed as only a temporary solution. The restructuring is intended to consolidate creditor negotiations, renegotiate debt and aircraft leases, and position the state-backed carrier for longer-term competitiveness in Europe.