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airBaltic has won an important decision with the U.S. Bankruptcy Court for the Southern District of New York regarding its plans following its Chapter 11 filing. This decision will allow them to retain typical business operations during the reorganization. airBaltic also has an approved financing arrangement which provides it with a EUR 140 million first tranche draw. The funds support the company during its operations.
The court’s approval allows airBaltic to maintain its normal flight operations throughout the restructuring process. It also granted interim approval for the airline’s debtor-in-possession (DIP) financing, allowing the carrier to immediately access the first EUR 140 million tranche from its previously announced EUR 350 million financing facility. This funding is expected to support continued operations and provide financial stability during the Chapter 11 process.
Erno Hildén, President and Chief Executive Officer of airBaltic: “The Court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring. 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.”
Court Approval Allows airBaltic to Maintain Normal Operations
The United States Bankruptcy Court’s approval allows airBaltic to continue operating its flight schedule and broader business activities without disruption throughout the Chapter 11 restructuring process. The airline has received permission to continue paying employee wages, salaries and benefits, while also maintaining normal services for passengers, including existing bookings, tickets, vouchers, refunds and loyalty programme points.
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The approved measures also allow airBaltic to meet certain obligations with critical suppliers, travel agency partners and distribution partners. The airline can continue paying suppliers and vendors for goods and services provided from September 14, 2026, while also handling taxes, insurance payments and regulatory fees through its usual business processes.
Passengers will not experience any changes due to the restructuring process. Flight operations will continue as scheduled, and refunds, vouchers, gift cards and credits related to baggage or service claims will be handled according to existing policies. Travellers with upcoming journeys do not need to take any additional action.
airBaltic Gains Access to EUR 350 Million DIP Financing Facility
The court has also granted interim approval for airBaltic’s debtor-in-possession (DIP) financing facility worth EUR 350 million. The financing arrangement has been organised by Strategic Value Partners as DIP Arranger and is supported by Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners.
The funding will be provided in multiple stages, with additional amounts available as the restructuring process advances, subject to the agreed financing conditions and further court approvals where required. Alongside revenue generated from ongoing operations, the financing is designed to support airBaltic’s daily activities and restructuring efforts under Chapter 11 protection.
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DIP financing is a specialised funding mechanism used by companies undergoing court-supervised restructuring. It provides access to capital that enables businesses to continue operating while developing and implementing a long-term financial recovery plan.
airBaltic Continues Restructuring Process Under Court Supervision
Following the approval of its initial court requests and interim access to DIP financing, airBaltic will continue its Chapter 11 reorganisation under the supervision of the U.S. Bankruptcy Court. The airline will continue discussions with creditors and other stakeholders as part of its restructuring programme.
The company’s focus remains on creating a more sustainable capital structure, improving financial stability and establishing a competitive cost base while maintaining uninterrupted operations for passengers and partners.
