airBaltic has won interim approval from the US Bankruptcy Court for the Southern District of New York to draw the first €140 million of its Chapter 11 debtor-in-possession financing, allowing Latvia’s national airline to keep operating normally while it restructures in New York. The airline filed for Chapter 11 on 14 September and has lined up a broader €350 million facility to support the court-supervised process.
The financing is backed by Strategic Value Partners and lenders including Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. The court’s order gives airBaltic immediate liquidity while the case advances, reducing near-term disruption risk for passengers, employees, suppliers and existing bookings.
airBaltic’s Chapter 11 filing is a rare European airline restructuring in the US bankruptcy system. The carrier, based in Riga and Mārupe, is using the process to preserve operations while working through its debt and wider financial reset. The remaining financing package still depends on further court steps before the full €350 million can be accessed.