A US bankruptcy court has granted airBaltic’s initial requests following the Latvian carrier’s voluntary filing for Chapter 11 protection, allowing the airline to maintain normal operations during its financial restructuring.
The court also authorised airBaltic to draw an initial €140 million from a €350 million debtor-in-possession financing facility. The remaining funds will become available in stages, subject to the financing terms and, where required, further court approval.
The decisions allow airBaltic to continue operating its flight schedule, pay employees and suppliers, and honour existing tickets, bookings, refunds, vouchers and loyalty points. Passengers with upcoming journeys do not need to take any action.
The financing facility was arranged by Strategic Value Partners and is backed by Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners. Together with revenue from ongoing operations, it will fund the airline throughout the court-supervised reorganisation.
AirBaltic said the process is intended to produce a more sustainable capital structure and a more competitive cost base. Chief executive Erno Hildén stressed that the airline would continue flying and serving customers normally while negotiating with creditors and other stakeholders.