Latvia’s national airline airBaltic could have as many as 25,000 creditors, with its largest unsecured claim – 66.518 million US dollars – held by aircraft engine manufacturer Pratt & Whitney, according to airBaltic’s filing with the US Bankruptcy Court.
The filing states that airBaltic has an estimated 10,001 to 25,000 creditors. The company estimates both its assets and liabilities at between one billion and ten billion US dollars.
The filing was submitted by airBaltic and its subsidiaries SIA Air Baltic Training and SIA Baltijas kravu centrs.
airBaltic also submitted a list of creditors holding its 30 largest unsecured claims.
The largest is Pratt & Whitney, with a claim of 66.518 million US dollars. It is followed by the Latvian Environment, Geology and Meteorology Centre with 42.432 million US dollars, the Latvian state, represented by the Ministry of Transport, with 20.067 million US dollars, and the State Revenue Service (VID) with 15.428 million US dollars.
The airline also owes 9.071 million US dollars to Riga Airport,
5.589 million US dollars to the European Organisation for the Safety of Air Navigation, Eurocontrol, 5.439 million US dollars to Netherlands-registered energy company Shell Energy Europe, 4.671 million US dollars to Ireland-registered aircraft lessor Macquarie Aircraft Leasing Services, 3.359 million US dollars to Ireland-registered trust and financial services provider Wilmington Trust SP Services, and 3.282 million US dollars to Airbus group company Airbus Flight Hour Services.
Claims by the remaining creditors on the list are each below three million US dollars.
As previously reported by LETA, airBaltic has begun restructuring its financial obligations under the US Chapter 11 procedure. At the same time, the airline has received binding commitments from lenders to provide 350 million euros in new financing to support the company’s liquidity and operations, at an interest rate of approximately 12%.
As a result,
the previous plan to raise up to 257 million euros from bondholders at an annual interest rate of 25% will not be implemented.
The airline explains that Chapter 11 protects airBaltic from creditor claims until the restructuring of its obligations has been completed.
Chapter 11 is a US court-supervised financial restructuring process that allows a company to restructure its financial obligations and capital structure while continuing its business operations. airBaltic stresses that Chapter 11 is not the legal equivalent of Latvia’s legal protection proceedings.
The company also says that flights and customer service will continue as usual. All flights will operate according to the planned schedule, existing tickets and reservations remain valid, and passengers can continue to purchase tickets and travel with airBaltic as before.
airBaltic says it has received binding commitments from lenders to provide 350 million euros in new financing to support its liquidity and operations during the Chapter 11 process in the form of debtor-in-possession, or DIP, financing.
The financing was arranged by Strategic Value Partners,
with commitments from Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners. The interest rate is SOFR plus 8%, currently equivalent to approximately 12%.
The company plans to complete the Chapter 11 process by around June 2027, subject to the necessary approvals from the US court and other conditions of the proceedings.
The restructuring process is being conducted under the supervision of the US Bankruptcy Court for the Southern District of New York.
In the coming days, the company will ask the US court for the customary approval required to use the financing. Together with cash flow generated by the company’s day-to-day operations, the financing is expected to provide sufficient funds for airBaltic to continue operating throughout the Chapter 11 process.
During the Chapter 11 proceedings, airBaltic will continue its day-to-day operations,
while the company’s existing Management Board and Supervisory Board will remain in place and continue performing their duties. The company will continue meeting its obligations to suppliers, service providers and other business partners in the ordinary course of business.
As previously reported, the earlier plan envisaged airBaltic bondholders deciding at a meeting on Tuesday, 15 September, on the terms of bridge financing of up to 257 million euros at an interest rate of 25%.
At the time, airBaltic said it had agreed with certain existing bondholders and third-party financing providers on the terms of bridge financing of up to 257 million euros. However, the planned financing still required approval from airBaltic’s bondholders and shareholders.
airBaltic’s Supervisory Board had approved a business plan that initially envisaged raising 225 million euros
in interim financing to improve liquidity, using the existing collateral package securing the 2029 senior bonds.
In the longer term, the plan envisaged recapitalising the company with more than 225 million euros in new debt and 100 million euros in new equity. Part of the existing 2029 bonds was to be converted into equity, while the remainder would be replaced with new, reduced debt of up to 125 million euros.
In August, airBaltic bondholders approved the capitalisation of the next two bond interest payments, as well as several other measures giving the airline additional flexibility in implementing its revised business plan.
Bondholders approved adding the interest payments due on the 14th of August and the 14th of November this year to the principal amount of the bonds instead of paying them in cash. A temporary waiver of minimum liquidity requirements until November 2026 was also approved.
Last year, airBaltic Group’s revenue increased by 4.2% compared with 2024, reaching 779.344 million euros. The group posted a loss of 44.337 million euros, 2.7 times lower than in 2024. In 2025, the airline carried a total of 5.2 million passengers, an increase of 1% from 2024.
Germany’s national airline Lufthansa became an airBaltic shareholder last summer. The Latvian state currently owns 88.37% of airBaltic, Lufthansa holds 10%, financial investor and Danish businessman Lars Thuesen’s Aircraft Leasing 1 owns 1.62%, and other shareholders hold the remaining 0.01%. The company’s share capital amounts to 41.819 million euros.
Read also: airBaltic agrees on financing of up to 257 million euros – interest rate set at 25% per year