airBaltic begins restructuring of financial obligations under US Chapter 11 procedure

Latvia's national airline airBaltic has begun restructuring its financial obligations through the Chapter 11 procedure provided under United States law. The company confirmed this to the LETA news agency.

New financing secured

Alongside launching the restructuring process, airBaltic has obtained a commitment from investors to provide new financing of 350 million euros. The funds are intended to ensure the company's liquidity and continued operations. The financing will carry an interest rate of 12%.

What Chapter 11 means

Chapter 11 is a procedure under US federal bankruptcy law that allows companies to continue operating while restructuring their financial obligations under protection from creditors. It is typically used by companies facing financial difficulties that wish to remain operational rather than face liquidation.

In its statement, airBaltic emphasized that the new financing will help ensure the company's uninterrupted operations throughout the restructuring process. Further details about the specific terms of the restructuring plan and its impact on the airline's future operations have not yet been disclosed.