airBaltic Seeks Bondholder Approval for DIP Financing Security Arrangements

airBaltic has called a bondholders’ meeting for 4 December 2026 to seek approval for security arrangements supporting its debtor-in-possession (DIP) financing as the Latvian carrier continues its Chapter 11 financial restructuring in the United States.

The proposed resolution concerns airBaltic’s 14.50% bonds due in 2029 and would authorize the granting of senior-ranking security to DIP lenders over collateral currently securing the bonds.

The arrangement, known as priming, would give DIP lenders priority over existing bondholders’ security interests and is a condition for accessing additional tranches of financing intended to maintain liquidity during the restructuring process.

airBaltic said it believes the security arrangements could be implemented without bondholder consent through bankruptcy court approval. However, the airline is seeking voluntary approval to simplify the process and preserve company value.

The proposed priming arrangements remain subject to authorization by the U.S. Bankruptcy Court for the Southern District of New York, with a hearing scheduled for 9 December 2026.

Bondholders supporting the extraordinary resolution will be eligible to receive cash consent fees or elect to participate in a junior tranche of the DIP financing, subject to the conditions outlined in the meeting notice.

The electronic bondholder meeting is scheduled for 4 December, with voting instructions due by 16:00 GMT that day.

airBaltic confirmed that its scheduled flight operations will continue throughout the Chapter 11 proceedings, regardless of the outcome of the bondholder vote.