airBaltic bondholders to decide Monday on interest deferral and new financing options
On Monday, 3 August, airBaltic's bondholders will hold a remote meeting to vote on deferring interest payments and securing additional financing. Latvia's State Treasury will represent the country.
Latvian national airline airBaltic is set to hold a remote bondholder meeting on Monday, 3 August, to address several important financial matters. The agenda includes a proposal to defer interest payments and plans to raise extra funding. The meeting will take place via Zoom, and the State Treasury will represent Latvia.
The airline has not disclosed the size of the additional financing it intends to secure or the exact method. According to available information, airBaltic is looking for short-term cash while it reviews its capital structure and searches for longer-term solutions.
One of the key votes will concern interest payments. Instead of paying interest in cash in August and November, the company proposes adding those payments to the principal amount of the bonds. Such a move would help the airline preserve more free cash in the short term.
Bondholders will also consider several technical changes intended to increase flexibility when raising funds. Among the proposals are simplifying the process for convening bondholder meetings and easing the adoption of certain decisions, which would allow faster access to financing if needed.
airBaltic continues working to stabilise its finances, reviewing its capital structure and preparing for further development. Maintaining sufficient cash flow for daily operations is a priority. At the same time, the airline stresses that passengers have no reason to worry: flights are expected to operate according to schedule even while negotiations with investors and bondholders are under way.
