airBaltic has won interim approval from a US bankruptcy court in New York to start drawing on its €350 million debtor-in-possession financing package, giving the Latvian carrier access to fresh liquidity as it restructures under Chapter 11. The ruling allows an immediate draw of €140 million and supports normal flight operations while the case proceeds under the supervision of the US Bankruptcy Court for the Southern District of New York.
The airline filed for Chapter 11 protection on 14 September after mounting financial pressure and sought court-backed funding to keep operating during the restructuring. The financing was arranged by a lender group including Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. The interim approval lets airBaltic tap the facility before full restructuring terms are finalised.
airBaltic expects to continue flying and serving customers during the process while it negotiates with creditors and lessors. Further court steps will still be needed before any final reorganisation plan can be approved and the carrier can exit Chapter 11.