airBaltic Bondholders Approve New Terms for Outstanding Bonds
airBaltic has announced that its bondholders have approved amendments to the terms of the airline's outstanding €380 million 14.5%-interest bonds, which are due in 2029.
AirBaltic has made a significant step towards financial sustainability after its bondholders approved new terms for the airline's outstanding bonds.
These changes were made possible due to the presence of bondholders representing more than 25% of the outstanding principal amount of the bonds, with more than 75% of those that voted supporting the measures.
The new terms include the addition of interest payments due on August 14 and November 14, 2026, to the principal of the bonds, rather than paying them out. Additionally, a temporary waiver until November 14, 2026, of the minimum liquidity requirement has been approved, along with the flexibilization of certain bond conditions.
The relaxation of certain bond conditions is a crucial step in airBaltic's path to financial sustainability. However, this is only the first step, and other items related to the interim financing of the airline were not voted on at this meeting.
## AirBaltic's Financial Challenges
AirBaltic is currently seeking an additional €225 million in interim financing and €100 million in new equity for its recapitalization. The airline's management has presented a business reorganization plan that includes retrenching at its main Riga (RIX) hub and downsizing both its fleet and its ACMI wet-leasing business.
## Key Bond Terms
| | | | --- | --- | | Outstanding principal amount | €380 million | | Interest rate | 14.5% | | Due date | 2029 | | Interest payments | Added to principal on August 14 and November 14, 2026 |
The airline's new strategic plan aims to guarantee financial viability, and these measures are a crucial part of that plan. While the approval of these new terms is a significant step forward, airBaltic still faces significant financial challenges in the coming months.
The airline's management will continue to work towards securing the necessary financing to ensure the airline's long-term viability. The approval of these new terms is a positive step, but it is only the first step in a long process.
