- S&P downgraded the credit rating of AirBaltic, Latvia's national airline.
- Latvia's State and Saeima are reviewing a bill to provide financial stabilization for AirBaltic.
- AirBaltic filed for Chapter 11 bankruptcy and secured financing from lenders including Oaktree Capital Management and Morgan Stanley.
AirBaltic Chapter 11 Filing Details and BluOr Bank Loan Assessment
What happened
Latvia's national airline, AirBaltic, filed for Chapter 11 bankruptcy on September 14, 2026, while in the process of restructuring. At the time of the filing, AirBaltic reported total liabilities of EUR 503.3 million, which included approximately EUR 7.9 million owed to BluOr Bank. This BluOr Bank loan was secured by the Riga Airport cargo hangar and its associated land use rights.
From baltictimes.com
Why it matters
The airline's financial difficulties are part of a larger situation involving a review of a bill by Latvia's government bodies aimed at providing financial stabilization for AirBaltic. The default of the airline's debt structure could affect the economic stability of the region.
AirBaltic filed for Chapter 11 bankruptcy and secured financing from lenders including Oaktree Capital Management and Morgan Stanley. Latvia's State and Saeima are reviewing a bill to provide financial stabilization for AirBaltic.
From baltictimes.com
Who's involved
- AirBalticLatvian flag-carrier airline that filed for Chapter 11 bankruptcy.
- BluOr BankCreditor of AirBaltic, holding a loan secured by the airline's cargo hangar.
- LatviaSovereign state where AirBaltic operates and is majority owned.
- Oaktree Capital ManagementProvided financing commitments to AirBaltic during its restructuring phase.
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The entities involved
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AirBaltic
Latvian airline; flag-carrier airline of the Baltic states; Latvia | Estonia | Lithuania
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