AirBaltic files for Chapter 11 bankruptcy in New York
The airline said flights, tickets and customer services will continue while it restructures debt with €350 million in debtor-in-possession financing.
- 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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AirBaltic has filed for bankruptcy protection to reduce financial liabilities. Operations continue.
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 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…
Flights will continue as normal. The airline says it has received a commitment for a new financing package of 350 million euros.
airBaltic Seeks Financial Safety Through Chapter 11
Latvia's airBaltic has initiated Chapter 11 bankruptcy proceedings in New York to undergo financial restructuring. The move is part of the company's strategy to effectively lower its outstanding debt. Filing for bankruptcy protection under the U.S. Bankruptcy Code allows airBaltic to manage its financial obligations more efficiently.
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