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airBaltic enters Chapter 11 bankruptcy protection and receives initial financing
Latvian national carrier airBaltic has entered Chapter 11 bankruptcy protection in the U.S. Southern District of New York. The restructuring process is intended to reorganize the company's debts and contracts rather than liquidate the business.
The court has approved a total debtor-in-possession (DIP) financing package of 350 million euros, organized by Strategic Value Partners. An initial tranche of 140 million euros has been released, with approximately 78.9 million euros earmarked to repay obligations to Export Development Canada and Axiom Baltic Services. This funding is intended to ensure operational continuity and facilitate the restructuring process.
As part of the court-mandated requirements, airBaltic must enter into non-disclosure agreements with at least two potential capital investors by early December. The airline also faces several milestones, including submitting a business plan and reaching agreements with aircraft lessors such as Airbus and Lufthansa.
Despite the proceedings, airBaltic has stated that its partnership with Air Serbia remains unaffected. The wet-lease arrangement, involving up to four Airbus A220-300 aircraft and their crews, will continue as scheduled. The company has also adjusted its long-term fleet expansion goals, shifting from a target of 100 aircraft by 2030 to a more gradual growth toward approximately 40 aircraft.
Entities
Air Serbia · AirBaltic · Airbus · Export Development Canada · Government of Latvia · Lufthansa · Strategic Value Partners
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The company must conclude non-disclosure agreements with at least two potential capital investors by early December. pmo.ee
- [○ 1 SOURCE] The bankruptcy restructuring will not impact the wet-lease arrangement with Air Serbia. www.exyuaviation.com
- [○ 1 SOURCE] The company aims to reduce its fleet growth targets, moving from a goal of 100 aircraft by 2030 to approximately 40 aircraft. www.missionline.it
- [○ 1 SOURCE] Air Serbia confirmed that all planned operations under the existing agreement with airBaltic are continuing without changes. www.exyuaviation.com
- [○ 1 SOURCE] Approximately 78.925 million euros of the first financing tranche will be used to repay obligations to Export Development Canada and Axiom Baltic Services. pmo.ee
- [● 2 SOURCES] The court approved an initial tranche of 140 million euros in debtor-in-possession (DIP) financing. pmo.ee · www.missionline.it
- [○ 1 SOURCE] The total DIP financing is organized by Strategic Value Partners and includes support from Barclays, Hayfin, Morgan Stanley, and Oaktree. www.missionline.it
- [● 2 SOURCES] airBaltic has filed for Chapter 11 bankruptcy protection in the U.S. Southern District of New York. pmo.ee · www.missionline.it