airBaltic voluntarily initiates Chapter 11 financial reorganisation
airBaltic initiated (14-Sep-2026) proceedings under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York, while continuing operations. airBaltic stated it is using the process to address financial obligations and achieve a more sustainable capital structure. Flights will operate as scheduled, tickets and reservations will remain valid, and customer service will continue as usual. airBaltic entered Chapter 11 with a commitment for EUR350 million in new debtor in possession (DIP) financing. The company will seek US court approval to access the financing in the coming days. Together with cash generated from ongoing operations, the financing is expected to provide sufficient liquidity for airBaltic to continue its operations during the Chapter 11 process. airBaltic president and CEO Erno Hildén stated: "Our focus is on continuing to run the airline while implementing the changes set out in our new business plan". [more - original PR]
Background ✨
airBaltic's supervisory board approved a revised business plan prioritising financial stability, including interim financing and a recapitalisation package featuring new debt/equity and partial equitisation of 2029 notes, while keeping capacity broadly stable and relying more on ACMI partnerships1. Bondholders later approved amendments to the EUR380 million 14.5% 2029 bonds, including interest capitalisation and a temporary liquidity covenant waiver to preserve cash2. airBaltic also pursued up to EUR257 million interim financing, subject to bondholder and shareholder approvals3.