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Air Baltic Faces Debt Restructuring Risk
2 Jun
Summary
- Airline's liquidity position is severely strained, says S&P.
- High risk of debt restructuring looms for the carrier.
- Bondholders have hired legal advisors due to cash shortages.

Air Baltic Corp. is facing severe financial distress, with its liquidity position described as "strained" by S&P Global Ratings. The ratings agency also indicated a "high risk of debt restructuring" for the Latvian state-backed airline.
The company is currently scrambling to address its diminishing cash reserves. This precarious financial situation has prompted bondholders to take action.
As a consequence of the airline's fiscal difficulties, a consortium of Air Baltic's bondholders has engaged legal advisors. The airline's management is working to navigate these challenging circumstances and find viable solutions for its financial woes.