AirBaltic has won initial approval from a New York bankruptcy court to draw the first €140 million of a €350 million debtor-in-possession financing package as it moves through Chapter 11 restructuring in the United States. The ruling lets the Latvian carrier keep normal operations running, including staff pay, ticket honouring and supplier payments, while the case proceeds under court supervision.
The decision covers the airline’s first-day motions and gives immediate access to the opening tranche of funding rather than waiting for a final hearing. It also supports commitments to customer bookings, vouchers, refunds and loyalty points, helping protect short-term liquidity during the restructuring.
AirBaltic filed voluntarily for Chapter 11 protection earlier this week as it seeks to reshape its debt burden in New York. The financing package is backed by lenders including Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management.
The court process is expected to continue alongside negotiations with bondholders, lessors and other creditors, with completion targeted for around June 2027.