Latvia’s state-backed carrier airBaltic will request interim financing from bondholders at a meeting on 3 August 2026 to secure liquidity while reviewing its capital structure and avert default risk[1][5]. The notice, previously unreported, invites all bondholders to participate but does not disclose the target amount[1][3]. Fitch Ratings assigns a CCC- rating, warning of high default likelihood without new funding or shareholder support[1][5]. The airline froze its 2026 IPO and forecasts needing €100–150 million for the winter 2026/2027 season amid negative free cash flow[2][11]. Bond yields on its €380 million 2029 issuance have surged since March, reflecting elevated distress perception[1][5]. Lufthansa remains a strategic partner as government officials question long-term viability and demand a revised business plan[1][13].