airBaltic undergoes Chapter 11 restructuring and funding reviews

Latvian national carrier airBaltic is undergoing financial restructuring under Chapter 11 bankruptcy proceedings in the United States. A court in the Southern District of New York is set to rule on the allocation of the remaining 35 million euro portion of the initial 175 million euro debtor-in-possession (DIP) financing. This is part of a larger planned 350 million euro DIP funding package intended to ensure liquidity and operational stability during the restructuring process.

As part of the restructuring milestones, airBaltic must maintain or assume specific contracts with the Lufthansa Group. Lenders have granted an extension until November 10 to meet the deadline for assuming these agreements, which includes a wet lease contract with Austrian Airlines. Failure to meet these conditions could impact the airline's access to subsequent tranches of the 350 million euro funding, which include further installments of 125 million and 50 million euros.