airBaltic to immediately receive first €140 million tranche of Chapter 11 financing

A United States court has approved a set of initial orders allowing airBaltic to continue normal operations throughout its Chapter 11 restructuring process. The court also gave preliminary approval to the airline's debtor-in-possession (DIP) financing arrangement, meaning airBaltic can now immediately access the first tranche of that financing, worth €140 million out of a previously announced total of €350 million.

airBaltic President and CEO Erno Hildén described the court's decisions as an important first step in restructuring the company's financial obligations, saying they allow the airline to keep operating while advancing the Chapter 11 process. He added that the DIP financing approval provides additional financial stability as the company works to build a stronger and more sustainable airBaltic.

What changes and what doesn't

The court-approved filings let airBaltic continue flying its planned schedule and operating without interruption, pay employee wages and related compensation, meet obligations to customers, fulfil certain obligations to partners, and pay suppliers and service providers for goods and services received on or after 14 September 2026. The airline will also continue making tax, insurance premium and regulatory payments.

For passengers, nothing changes: flights continue according to the existing schedule, while refunds, vouchers, gift cards, loyalty points and baggage- or service-related claims continue to be handled under existing rules. Passengers with upcoming airBaltic flights do not need to take any action.

Behind the financing

The DIP financing was arranged by Strategic Value Partners, with funds provided by Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. The money is intended to support airBaltic's liquidity and operations during the Chapter 11 process, with further tranches to be released as the restructuring progresses and, where required, subject to additional court approvals.

airBaltic will now continue restructuring its financial obligations under court oversight and hold talks with creditors and other stakeholders, aiming for a more sustainable capital structure and competitive cost levels.