AirBaltic files for Chapter 11 bankruptcy in New York
The carrier said flights, tickets and customer service will continue while it negotiates with creditors 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.
104 Articles
104 Articles
Until now, the company will continue to operate its scheduled flights during its court supervision process.
The war in the Middle East is a new victim in air transport. The Latvian airline Air Baltic announced on Monday 14 September that it would be placed under the protection of the "Chapter 11" of the US Bankruptcy Act, a procedure that allows it to restructure its debt under the supervision of a court while continuing its activity. Since the beginning of the conflict, the price of air fuel has almost doubled, particularly weakening the least protec…
Airline airBaltic has filed for bankruptcy protection in the United States due to financial difficulties. The company said it is filing under Chapter 11 of the U.S. Bankruptcy Code, which allows companies to restructure and raise new capital under court supervision. It said there will be no impact on normal operations or passengers.
Air Baltic flies to the five largest airports in Germany, but the Latvian company has not been running well financially for a long time. Now, the largest airline in the Baltic region is trying to pull the rudder around.
Coverage Details
Bias Distribution
- 47% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
