AirBaltic files for Chapter 11 bankruptcy in New York
The Latvian carrier said 350 million euros in financing will support operations while it restructures debt under court supervision.
- On Monday, AirBaltic filed for protection under Chapter 11 of the U.S. Bankruptcy Code in New York as part of a financial restructuring aimed at reducing its debt.
- Escalating fuel costs from the U.S. war with Iran doubled jet prices, worsening the airline's liquidity position after a €30 million Latvian state loan in April compounded financial pressures.
- Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management committed €350 million in debtor-in-possession financing to support operations during restructuring.
- Despite the Chapter 11 filing, AirBaltic assured customers that all flights, reservations, and services continue uninterrupted throughout the court-supervised restructuring process.
- The filing marks the second airline casualty linked to the Iran conflict after Spirit Airlines collapsed in May, while competitors like AirAsia seek fresh capital amid rising fuel pressures.
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berlingske.dk
AirBaltic has filed for bankruptcy protection to reduce financial liabilities. Operations continue.
Latvian airline airBaltic has filed for Chapter 11 bankruptcy protection in the US due to rising fuel costs and debt. The company announced it has secured €350 million in financing to continue operations during the restructuring process.
Air Baltic also has flight routes from Finnish cities.
The airline wants to reorganize financially under judicial supervision. For passengers there should be no changes to the airline, also for other companies,
airBaltic Files for Chapter 11 With €350 Million Financing in Place
AirBaltic has filed for Chapter 11 bankruptcy protection in New York to restructure its heavy debt, backed by roughly €350 million in debtor-in-possession financing from a group of lenders, while the airline maintains ongoing operations and confirms tickets remain valid. As Latvia’s flag carrier with government ownership, the move is aimed at stabilizing finances and positioning the airline for a more competitive, leaner future in Europe’s crowd…
airBaltic Initiates Chapter 11 Financial Reorganisation; Flights and Customer Services to Continue
Air Baltic Corporation AS (hereinafter – airBaltic or the company), the national airline of Latvia and leading carrier in the Baltic States, today announces that airBaltic and certain of its subsidiaries have voluntarily initiated proceedings under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “U.S. Court”). Chapter 11 is a well-established U.S. legal framework, recognised…
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