Monday, 14th September 2026. AirBaltic started a financial reshuffle under a voluntary pressure under Chapter 11 of the United States Bankruptcy Code before the court of Bankruptcy for the Southern District of New York. The Legal process is to aim at making a restructure of the airline’s liabilities and develop a long term sustainable capital plan in securing its operational and commercial viability.
AirBaltic has finalized a €350 million debtor-in-possession (DIP) financing package arranged by Strategic Value Partners to stabilize its liquidity and safeguard ongoing business operations during its court-supervised restructuring. A high-profile syndicate of institutional lenders including Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management is participating in the credit facility to provide immediate operational support. The rescue capital carries a coupon of SOFR plus 8%, pricing the current total borrowing cost at approximately 12%.
To utilize the capital, airBaltic will file a motion seeking customary approval from a US bankruptcy court in the coming days. Once approved, the €350 million facility will be paired with the airline’s daily cash generation from standard commercial flights. Together, these funding channels will ensure the carrier possesses the necessary runway to sustain uninterrupted, day-to-day operations throughout the duration of the judicial process.
