airBaltic Gains Court Approval to Access Initial €140 Million of DIP Financing

airBaltic has received U.S. Bankruptcy Court approval for its initial Chapter 11 motions, allowing the Latvian carrier to continue normal operations and immediately access €140 million of its €350 million debtor-in-possession financing facility.

The U.S. Bankruptcy Court for the Southern District of New York granted the airline’s customary first-day relief and approved its DIP financing on an interim basis. The decision follows airBaltic’s voluntary Chapter 11 filing on September 14.

The initial €140 million tranche will provide liquidity as airBaltic continues operations and negotiates with creditors and other stakeholders. Access to the remaining €210 million will be available in additional tranches as the restructuring progresses, subject to the facility’s conditions and further court approvals where required.

Strategic Value Partners arranged the €350 million DIP facility, with funding provided by Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners.

The court orders also authorize airBaltic to continue paying employee wages and benefits, maintain customer tickets, refunds, vouchers and loyalty points, and meet certain obligations to critical suppliers and distribution partners. Vendors can continue to be paid on normal terms for goods and services supplied from September 14 onward.

The DIP financing, together with cash generated from ongoing operations, is intended to fund the airline through its court-supervised restructuring. airBaltic is using Chapter 11 to reduce its financial obligations and establish a more sustainable capital structure and cost base.

Flights and customer services remain unaffected by the proceedings, with existing bookings and tickets continuing to be honored.