airBaltic has filed for Chapter 11 protection in New York as it seeks to restructure debt while keeping flights and customer service operating normally. The Latvian carrier, majority owned by the government, secured a €350 million debtor-in-possession financing commitment to support liquidity during the court-supervised process.
The filing was made in the Southern District of New York and is intended to reduce debt and stabilise the balance sheet. The financing package comes from a group that includes Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. airBaltic has presented the move as voluntary and says the restructuring is designed to allow the airline to continue meeting its obligations.
The step highlights the pressure on European airlines exposed to international debt and volatile operating conditions. airBaltic has cited sector stress linked to the Iran war, while the Chapter 11 process gives the carrier protection from creditor claims as it works through its restructuring.