airBaltic bondholders back capitalization of interest payments

Holders of bonds issued by Latvia's national airline "airBaltic" have supported a decision to capitalize the airline's next two interest payments. The vote took place on Monday, with the outcome disclosed through a company announcement to the Dublin-based "Euronext Dublin" exchange, where airBaltic's bonds are listed.

Capitalizing interest payments means that, instead of being paid out in cash to bondholders for the relevant period, the interest amounts are added to the principal sum of the bonds. This increases the airline's overall debt obligations going forward, while easing pressure on its short-term cash flow.

The source report does not specify the exact sums involved, the dates covered by the capitalized payments, or other details surrounding the decision-making process and next steps.

airBaltic is a state-owned Latvian airline whose financial instruments, including bonds, are traded on international exchanges. As a result, information about its obligations to investors is disclosed in line with exchange listing requirements.