airBaltic has entered Chapter 11 proceedings in the United States and secured a €350 million debtor-in-possession financing commitment to support operations while it restructures debt. The case was filed in the U.S. Bankruptcy Court for the Southern District of New York and covers Air Baltic Corporation AS, along with its subsidiaries Air Baltic Training SIA and Baltijas Kravu Centrs SIA, while flights, tickets and reservations remain valid.
The airline is pursuing the court-supervised process to preserve value and keep daily operations running as it works through a broader balance-sheet repair. The financing package is intended to provide liquidity during the restructuring, with terms indicating pricing around SOFR plus 8%. The commitment includes Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management among the lenders named in the filings.
The move affects a majority-state-owned Baltic flag carrier that has been under pressure to reduce debt and stabilise its capital structure. The funding still requires customary court approval before it can be drawn, but the commitment signals continued appetite from specialist lenders for airline restructurings backed by court supervision.