airBaltic has won initial approval from a U.S. bankruptcy court in New York to continue operating under Chapter 11 protection and draw the first €140 million from a €350 million debtor-in-possession financing package. The decision gives the Latvian carrier immediate liquidity support as it restructures its debt while keeping flights and commercial activity running.
The interim ruling from the Southern District of New York covers the airline’s first-day relief motions, allowing wages, supplier payments and other day-to-day obligations to continue in the ordinary course. Financing for the package comes from a group including Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. airBaltic filed for Chapter 11 on 14 September and had already indicated that normal operations would continue during the process.
The approval reduces near-term funding pressure on the Baltic flag carrier and helps shield passengers, travel partners and vendors from immediate disruption. Under the court-backed plan, suppliers and travel agencies are to be paid on normal terms for goods and services delivered from 14 September onward, while employee wages, benefits, taxes, insurance premiums and regulatory fees remain covered during the restructuring.