US court accepts airBaltic Chapter 11 filing, Latvian prime minister says

Sept 16 (Reuters) - A U.S. court judge has accepted Latvian carrier airBaltic's request to enter Chapter ‌11 under the U.S. bankruptcy code and ‌restructure its debt, Prime Minister Andris Kulbergs said on Wednesday.

"This ​means that airBaltic will be able to: immediately access financing; begin the restructuring process; review obligations to creditors. Work continues," Kulbergs said in a post ‌on social media X.

The ⁠airline did not immediately reply to a request for comment.

AirBaltic, majority-owned by the ⁠Latvian government, voluntarily filed for protection under Chapter 11 on Monday as it seeks to cut its ​debt ​pile after the Iran ​war increased financial pressure.

The ‌company has said it secured a commitment for €350 million ($404.1 million) in financing from certain lenders, subject to court approval.

In the coming months, airBaltic is expected to negotiate with bondholders, aircraft lessors and other ‌creditors as it works toward ​a formal reorganisation plan, which ​will require separate ​court approval before the company can ‌exit Chapter 11.

The airline has ​said it aims ​to complete the process by around June 2027, with a reduced fleet and lower operating ​costs as ‌part of its longer-term business plan.

(Reporting ​by Gianluca Lo Nostro; Editing by Stine ​Jacobsen and Terje Solsvik)