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airBaltic files for Chapter 11 bankruptcy protection in the US
Latvia’s national carrier, airBaltic, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The airline aims to restructure its debt and reorganize its capital structure while maintaining continuous flight operations. All existing bookings and flight schedules remain valid.
The filing follows significant financial pressure caused by rising jet fuel prices, exacerbated by geopolitical tensions between the U.S. and Iran. To ensure liquidity during the restructuring process, airBaltic has secured a commitment for approximately 350 million euros in debtor-in-possession (DIP) financing. This funding is organized by Strategic Value Partners and includes commitments from Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management, at an interest rate of approximately 12%.
The restructuring process is expected to conclude by June 2027. Major creditors include engine manufacturer Pratt & Whitney, with claims of 66.518 million USD, and the Latvian Environment, Geology and Meteorology Centre, which manages EU ETS carbon dioxide emission quotas.
Management, including CEO Erno Hildén and Board Chair Andrejs Martinovs, emphasized that the move is intended to create a more sustainable financial foundation and does not impact passenger services.
Entities
Air Baltic · AirBaltic · Andrejs Martinovs · Barclays · Erno Hildén · Latvia · Latvian government · Lufthansa · Morgan Stanley · New York Bankruptcy Court · New York Southern District Bankruptcy Court · Pratt & Whitney
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Digital monopolization levels have remained largely unchanged over the last six years.
- [● 3 SOURCES] The concentration of attention within a few tech giants poses a threat to democracy.
- [● 3 SOURCES] The Gini coefficient for the distribution of attention in digital media is 0.987.
- [● 3 SOURCES] The European Union's Digital Markets Act has not successfully altered the concentration of digital attention.
- [● 2 SOURCES] Lufthansa holds a 10 percent minority stake in the airline. valor.globo.com · novekedes.hu
- [● 5 SOURCES] The Latvian government is the majority shareholder of airBaltic. valor.globo.com · novekedes.hu · www.yenicaggazetesi.com · faktum.at · www.economiadigital.es
- [● 25 SOURCES] airBaltic has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. aviation.direct · italiavola.com · valor.globo.com · www.aerotelegraph.com · www.aerointernational.de · +18 more
- [● 4 SOURCES] Rising aviation fuel prices, driven by conflict between the U.S. and Iran, contributed to the airline's financial distress. valor.globo.com · novekedes.hu · www.sondakika.com · www.yenicaggazetesi.com
- [● 23 SOURCES] Flight operations, existing bookings, and customer services will continue without interruption during the restructuring process. aviation.direct · italiavola.com · www.aerointernational.de · www.aerotelegraph.com · www.sondakika.com · +16 more
- [● 7 SOURCES] The restructuring process is expected to be completed by June 2027. aviation.direct · www.aerotelegraph.com · faktum.at · liveandletsfly.com · novekedes.hu · +2 more
- [● 10 SOURCES] The financing syndicate includes Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management. italiavola.com · valor.globo.com · www.aerotelegraph.com · www.sondakika.com · www.yenicaggazetesi.com · +5 more
- [● 28 SOURCES] The airline has secured a commitment for approximately 350 million euros in debtor-in-possession (DIP) financing. aviation.direct · italiavola.com · valor.globo.com · www.aerotelegraph.com · www.sondakika.com · +20 more