Latvia’s airBaltic has filed for voluntary Chapter 11 bankruptcy protection in New York, seeking to restructure its debt while keeping flights, ticket sales and customer service operating normally. The carrier has secured commitment for about €350 million in debtor-in-possession financing to support liquidity during the court-supervised process.
The filing covers airBaltic and two subsidiaries, AirBaltic Training and Baltic Cargo Center, in the US Bankruptcy Court for the Southern District of New York. Reuters reported that the airline is carrying about $583.9 million in funded debt and roughly $992.5 million in operating lease obligations, underscoring the scale of the balance-sheet strain.
The financing package is backed by lenders including Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. AirBaltic expects the restructuring to run until around June 2027, while the new funding is intended to bridge operations through the process.