U.S. Court Accepts airBaltic's Chapter 11 Filing
A U.S. court has accepted Latvian airline airBaltic’s request to file for Chapter 11 bankruptcy protection, allowing the carrier to restructure its debt and access financing under supervision of a restructuring plan. The move follows increased financial pressure due to rising costs linked to geopolitical tensions in Iran. Prime Minister Andris Kulbergs confirmed that this will enable airBaltic to begin negotiations with creditors including bondholders and aircraft lessors. The airline has secured preliminary commitments for €350 million ($404.1 million) from certain lenders, pending court approval. The restructuring process is expected to last until June 2027, during which the company plans to reduce its fleet size and lower operating costs as part of a long-term strategy.
Topics: airBaltic Chapter 11 filing debt restructuring