airBaltic Bondholders Approve Amendments to Preserve Liquidity

airBaltic bondholders have approved amendments to the airline’s €380 million 14.50% bonds due in 2029, providing the Latvian carrier with additional financial flexibility as it works to secure interim financing and implement its revised business plan.

At a reconvened bondholder meeting on August 17, holders representing more than 25% of the outstanding principal were represented, with more than 75% of votes cast supporting each proposed resolution.

The amendments allow airBaltic to capitalize interest payments due on August 14 and November 14, 2026, adding the interest to the principal balance rather than paying it in cash. Bondholders also approved a temporary waiver of the minimum liquidity requirement through November 14 and temporarily suspended certain requirements related to the Bond Service Reserve Account.

Additional changes were approved to notice periods and quorum requirements for future bondholder meetings.

The measures are intended to conserve liquidity while airBaltic progresses discussions with stakeholders over interim financing. The financing itself was not voted on at the August 17 meeting, and its terms remain under development.

airBaltic recently outlined a revised business plan focused on financial stability, including a smaller Airbus A220-300 fleet, a more concentrated network centered on Riga, increased aircraft utilization and a lower structural cost base.

The airline is seeking €225 million of interim financing as part of a broader proposed recapitalization. Its longer-term plan contemplates up to €225 million of new debt and €100 million of new equity, alongside the partial conversion of its existing 2029 bonds into equity and replacement of the remaining portion with reduced debt.

airBaltic said operations and its flight schedule remain unaffected while the restructuring and financing discussions continue.