airBaltic Secures Court Approval for €140 Million in Chapter 11 Financing

Latvia’s national airline, airBaltic, has won interim approval from a U.S. bankruptcy court to immediately draw €140 million from a larger financing facility after voluntarily filing for Chapter 11 protection. The ruling allows the carrier to fund its operations and maintain its flight schedule while it undergoes a financial reorganization.

Court Approves DIP Financing

The U.S. Bankruptcy Court for the Southern District of New York approved the airline's "first-day motions" on Wednesday, including access to a debtor-in-possession (DIP) financing facility totaling €350 million. The initial €140 million tranche is intended to provide immediate liquidity.

The financing was arranged by Strategic Value Partners and is funded by a consortium that includes Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management, and Strategic Value Partners. Further funding will be available in tranches as the restructuring progresses, subject to financing terms and additional court approvals.

Operational Continuity Ensured

According to the company, the court's approvals ensure there will be no interruption to its business. The financing, combined with cash from ongoing operations, will allow airBaltic to continue normal activities throughout the Chapter 11 process.

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Key commitments that will be honored include:

• Operating its full flight schedule as planned.
• Paying employee wages, salaries, and benefits without disruption.
• Honoring all existing customer bookings, tickets, vouchers, and loyalty points.
• Paying suppliers for goods and services delivered on or after the filing date of September 14, 2026.

Next Steps in Reorganization

The court's decisions provide the airline with financial stability as it moves forward with its restructuring plan and continues discussions with creditors and other stakeholders under court supervision.

"The Court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring," said Erno Hildén, president and chief executive officer of airBaltic. "For our passengers, employees and partners, our focus remains unchanged: we continue flying and serving our customers as normal."