Latvia's flag carrier, airBaltic, obtained interim relief from the U.S. Bankruptcy Court for the Southern District of New York on Wednesday that allows the airline to immediately access €140 million of a committed €350 million financing package accompanying its voluntary Chapter 11 filing.
The court granted first-day motion approvals filed with the Chapter 11 petition and authorised the company to draw the initial tranche from the debtor-in-possession financing on an interim basis. The DIP facility was arranged by Strategic Value Partners and is funded by Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners.
Under the terms approved by the court, the financing is staged in tranches and additional amounts will become available as the restructuring process advances, subject to the financing terms and any further court approvals that may be required. The interim access gives airBaltic immediate liquidity to support its operations while it pursues a broader reorganisation.
The court's rulings allow the airline to operate its published flight schedule and continue broader business activities without interruption. The company is authorised to pay employee wages, salaries and benefits, and to fulfill existing customer commitments including bookings, tickets, vouchers, refunds and loyalty points in the ordinary course.
In addition to payroll and customer obligations, the approvals permit airBaltic to meet certain obligations to critical suppliers, travel agency partners and distribution partners. The airline may pay suppliers and vendors on standard commercial terms for goods and services delivered on or after Sept. 14, 2026, and to continue to pay taxes, insurance premiums and regulatory fees in the ordinary course of business.
The carrier said there is no impact on passengers and that operations continue as normal. Refunds, vouchers, gift cards and credits tied to baggage or service claims will continue to be processed under existing policies. The company noted that passengers holding upcoming travel reservations do not need to take any action.
airBaltic said that, together with cash generated from ongoing operations, the DIP financing is intended to fund its day-to-day operations and support the restructuring process throughout Chapter 11. The airline emphasised that the financing provides liquidity while the company carries out its reorganisation under U.S. court supervision and continues talks with creditors and other stakeholders.
Erno Hildén, president and chief executive officer of airBaltic, commented on the court decisions, saying: "The Court's decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring." He added: "The approval of our DIP financing provides additional financial stability as we work to build a stronger and more sustainable airBaltic. For our passengers, employees and partners, our focus remains unchanged: we continue flying and serving our customers as normal."
With interim financing now accessible, the airline will press ahead with its Chapter 11 reorganisation under the supervision of the U.S. court and in parallel with ongoing discussions with creditors and other stakeholders. Any future draws from the committed facility will follow the financing agreement and require further approval where applicable.
Operational and market context
The interim court approvals are designed to ensure continuity of service, preserve employment-related obligations and maintain relationships with distribution partners and suppliers during the restructuring period. The staged nature of the DIP facility and the requirement for additional court sign-off for subsequent tranches means access to the full financing package is contingent on both contractual milestones and judicial approval.