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AirBaltic Chapter 11 restructuring and investment search

Updated 33 times since CLSTR started tracking revisions of this situation.

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2026-10-13 08:42 UTC → 2026-10-16 08:53 UTC · added ~~removed~~

AirBaltic is undergoing a major financial and operational restructuring to avoid insolvency. Following a filing for voluntary Chapter 11 bankruptcy protection in the United States, the airline is implementing drastic cost-cutting measures to secure up to €350 million in debtor-in-possession (DIP) financing. This ~~financing, which has received temporary court approval,~~ financing carries high ~~costs~~ costs, including approximately 12 percent annual interest. ~~As part of the Chapter 11 process in~~ To facilitate stabilization, the ~~U.S. Bankruptcy Court for~~ Latvian Saeima passed legislation enabling the Southern District of New York, an official committee of unsecured creditors has been established. This committee includes Airbus Canada Limited Partnership, aircraft leasing companies Jackson Square Aviation Ireland and AVAP Leasing (Europe), state to manage its financial interests through inter-financing, bond purchases, and the ~~airports~~ capitalization of ~~Tallinn and Lithuania. The restructuring plan, which requires court approval, may lead to~~ claims. Bondholders have already approved the ~~full or partial discharge~~ capitalization of ~~obligations. To strengthen financial stability, AirBaltic has announced plans~~ interests for ~~mass layoffs that could affect~~ bonds totaling €380 million. While experts suggest the airline requires between ~~500~~ €500 million and ~~700 employees, representing approximately 20% of its 3,000-person workforce, across bases~~ €600 million in ~~Riga, Vilnius, and Tallinn. The company also intends to reduce its Airbus A220-300 fleet and increase cooperation with ACMI partners. The Latvian Ministry of Transport~~ total funding, Lithuanian President Gitanas Nausėda has ~~emphasized~~ cautioned that Lithuania should not invest in the ~~process must comply with national labor laws and EU directives. Financial reports~~ airline until it returns to profitability, emphasizing the need for radical cost reductions. Operational challenges persist as the airline manages significant financial losses. For the first half of ~~2026 show~~ 2026, AirBaltic recorded a ~~significant~~ loss of €128.2 million, a sharp increase ~~in losses, with the airline recording 128.2 million euros compared to 1.7~~ from €1.7 million ~~euros~~ in the same period of ~~2025. Despite this, revenue rose 14.2% to 399.2 million euros, driven by~~ 2025, despite a ~~15%~~ 14.2% rise in ~~passenger numbers. While~~ revenue. In the ~~bankruptcy court has approved~~ U.S. Bankruptcy Court for the Southern District of New York, motions ~~allowing~~ have been approved to allow the airline to maintain day-to-day operations, including critical aviation contracts and employee ~~compensation,~~ compensation. Regarding workforce reductions, the planned layoffs of 500 to 700 employees—roughly 20% of the workforce—will proceed as scheduled. The Latvian State Employment Agency declined a ~~hearing regarding 35 million euros in DIP financing has been postponed~~ request from the Latvian Aviation Association to ~~October 19.~~ extend the collective redundancy period from 30 to 60 days, finding no legal grounds for an extension.

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