Air Baltic is restructuring in Chapter 11 with final authority for up to €350 million in debtor-in-possession financing; access to the later tranches depends on a separate priming order and other conditions. The final financing order Dkt. 152 schedules the priming hearing for November 17–18, 2026.

Air Baltic Corporation AS is restructuring in Chapter 11 under a business plan that calls for a smaller fleet, reduced lease costs and a recapitalized balance sheet. The court granted final authority for up to €350 million in debtor-in-possession financing on October 20, 2026, while reserving the proposed priming of bond collateral for a separate hearing on November 17–18, according to the final financing order Dkt. 152.

Air Baltic and two affiliates filed on September 14, 2026. The first-day declaration Dkt. 14 attributes the liquidity crisis to pandemic losses, the loss of routes following Russia’s invasion of Ukraine, engine shortages that grounded aircraft, and higher fuel prices. It reports approximately €503.3 million in funded debt and €855.6 million in operating lease obligations at filing. The proposed business plan contemplates returning approximately 20 surplus aircraft, obtaining lease and other stakeholder concessions, and refocusing the network on Riga.

The financing order authorizes €175 million in the first tranche, with up to €125 million and €50 million in two later tranches subject to conditions, milestones and a priming order. It also ratifies the completed repayment of EDC/Axiom finance lease obligations and transfer of the associated collateral to the borrower. Separately, the DIP milestone notice Dkt. 127 reports that lenders extended the deadline for assuming Lufthansa wet lease agreements to November 10, 2026.

Air Baltic is restructuring in Chapter 11 with final authority for up to €350 million in debtor-in-possession financing; access to the later tranches depends on a separate priming order and other conditions. The final financing order Dkt. 152 schedules the priming hearing for November 17–18, 2026.

Air Baltic Corporation AS is restructuring in Chapter 11 under a business plan that calls for a smaller fleet, reduced lease costs and a recapitalized balance sheet. The court granted final authority for up to €350 million in debtor-in-possession financing on October 20, 2026, while reserving the proposed priming of bond collateral for a separate hearing on November 17–18, according to the final financing order Dkt. 152.

Air Baltic and two affiliates filed on September 14, 2026. The first-day declaration Dkt. 14 attributes the liquidity crisis to pandemic losses, the loss of routes following Russia’s invasion of Ukraine, engine shortages that grounded aircraft, and higher fuel prices. It reports approximately €503.3 million in funded debt and €855.6 million in operating lease obligations at filing. The proposed business plan contemplates returning approximately 20 surplus aircraft, obtaining lease and other stakeholder concessions, and refocusing the network on Riga.

The financing order authorizes €175 million in the first tranche, with up to €125 million and €50 million in two later tranches subject to conditions, milestones and a priming order. It also ratifies the completed repayment of EDC/Axiom finance lease obligations and transfer of the associated collateral to the borrower. Separately, the DIP milestone notice Dkt. 127 reports that lenders extended the deadline for assuming Lufthansa wet lease agreements to November 10, 2026.