airBaltic files for US Chapter 11 bankruptcy protection

airBaltic, Latvia's national airline, has filed for Chapter 11 bankruptcy protection in the United States to restructure its international financial obligations. The company announced the filing on Monday in the U.S. Bankruptcy Court for the Southern District of New York, stating it has secured a binding commitment for 350 million euros in new financing to support operations during the process. The airline emphasized that all flights will operate as scheduled, tickets and reservations remain valid, and customer service will continue as usual. CEO Erno Hilden said the Chapter 11 process was chosen because the airline's existing financial obligations, combined with investments for its new business plan, require a more sustainable capital structure. He stressed the filing does not mean liquidation and will not require additional state funding. The debtor-in-possession financing was arranged by Strategic Value Partners and funded by Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management, and Strategic Value Partners. The interest rate is approximately 12 percent.