My statement on airBaltic
Today, airBaltic is initiating financial restructuring in a US court under Chapter 11. This time we are not buying a few more months of life support for the airline. We are beginning to solve problems at their core.
It must be admitted that negotiations with bondholders were not progressing. Several investors, who had bought the bonds on the exchange at about 70 percent of their nominal value, were more reliant on airBaltic's liquidation and recovery of pledged assets rather than on restructuring the company.
Another loan of up to 257 million euros at an annual rate of 25% was offered. That could provide the company with money for the near term, but would not solve either the previously accumulated debt or the problem of aircraft lease obligations. Therefore, I did not accept this offer as a long-term solution.
Chapter 11 is a US court-supervised financial restructuring that allows airBaltic to continue flying while restructuring debts and lease agreements and attracting the financing needed for operations.
Simply put, it is a protective shield that gives the company time and legal protection against creditor claims, allowing management to implement a full restructuring plan.
This does not yet mean that all of airBaltic's problems are solved. But this is one of the best currently possible solutions to ensure the company's viability and give it the chance to stand on its own feet.
For the process, airBaltic has received commitments from financiers to provide 350 million euros in new financing at a 12% rate. International financial market participants such as banks Morgan Stanley, Barclays, and private financiers Hayfin Capital Management, Oaktree Capital, and Strategic Value Partners have expressed readiness to finance. This is a significant and positive signal of trust.
At the same time, I have instructed the Ministry of Transport to declassify restricted government documents related to airBaltic, so that the public finally has full information about the decisions made within the company, the use of state money, and the consequences of those decisions.
The most important news for passengers is that airBaltic continues operations, the planes continue flying, and purchased tickets remain valid. This is not yet the finish and not a victory statement. But a process that addresses airBaltic's problems at their core has finally begun.
Today it is unlikely a better option could be found. This is a real decision, critics will have to agree. Let's hope AirBaltic will get out of the sea of schemes of Gauss and Co. The good news is that through this process, finally the losses inflicted on the state and taxpayers can be recorded, and then we will see if the prosecutor's office will be as eager as in the timber industry case...:))
“Today, the review of @airBaltic's debt burden begins in a US court, in accordance with the 'Chapter 11' procedure stipulated in US law, which means that this time we are starting to solve the problem on its merits,” emphasizes Prime Minister @AndrisKulbergs. https://t.co/o01zrWvd5Z
Kulbergs is no solution. At least in the airB matter everything is stuck. One could try to present this as part of a 'plan', but let's be honest, there really is no plan. Soon you'll be able to borrow at 50%..
I feel sorry for all the guntarvītols and other corrupt yappers who until now were breathlessly saying that 257 million at a 25% rate was all fine — now the poor things have to strain again and turn their coats inside out once more. https://t.co/7kBi1EKSVv
My statement on airBaltic
Today, airBaltic is initiating financial restructuring in a US court under Chapter 11. This time we are not buying a few more months of life support for the airline. We are beginning to solve problems at their core.
It must be admitted that negotiations with bondholders were not progressing. Several investors, who had bought the bonds on the exchange at about 70 percent of their nominal value, were more reliant on airBaltic's liquidation and recovery of pledged assets rather than on restructuring the company.
Another loan of up to 257 million euros at an annual rate of 25% was offered. That could provide the company with money for the near term, but would not solve either the previously accumulated debt or the problem of aircraft lease obligations. Therefore, I did not accept this offer as a long-term solution.
Chapter 11 is a US court-supervised financial restructuring that allows airBaltic to continue flying while restructuring debts and lease agreements and attracting the financing needed for operations.
Simply put, it is a protective shield that gives the company time and legal protection against creditor claims, allowing management to implement a full restructuring plan.
This does not yet mean that all of airBaltic's problems are solved. But this is one of the best currently possible solutions to ensure the company's viability and give it the chance to stand on its own feet.
For the process, airBaltic has received commitments from financiers to provide 350 million euros in new financing at a 12% rate. International financial market participants such as banks Morgan Stanley, Barclays, and private financiers Hayfin Capital Management, Oaktree Capital, and Strategic Value Partners have expressed readiness to finance. This is a significant and positive signal of trust.
At the same time, I have instructed the Ministry of Transport to declassify restricted government documents related to airBaltic, so that the public finally has full information about the decisions made within the company, the use of state money, and the consequences of those decisions.
The most important news for passengers is that airBaltic continues operations, the planes continue flying, and purchased tickets remain valid. This is not yet the finish and not a victory statement. But a process that addresses airBaltic's problems at their core has finally begun.
My statement on airBaltic
Today, airBaltic is initiating financial restructuring in a US court under Chapter 11. This time we are not buying a few more months of life support for the airline. We are beginning to solve problems at their core.
It must be admitted that negotiations with bondholders were not progressing. Several investors, who had bought the bonds on the exchange at about 70 percent of their nominal value, were more reliant on airBaltic's liquidation and recovery of pledged assets rather than on restructuring the company.
Another loan of up to 257 million euros at an annual rate of 25% was offered. That could provide the company with money for the near term, but would not solve either the previously accumulated debt or the problem of aircraft lease obligations. Therefore, I did not accept this offer as a long-term solution.
Chapter 11 is a US court-supervised financial restructuring that allows airBaltic to continue flying while restructuring debts and lease agreements and attracting the financing needed for operations.
Simply put, it is a protective shield that gives the company time and legal protection against creditor claims, allowing management to implement a full restructuring plan.
This does not yet mean that all of airBaltic's problems are solved. But this is one of the best currently possible solutions to ensure the company's viability and give it the chance to stand on its own feet.
For the process, airBaltic has received commitments from financiers to provide 350 million euros in new financing at a 12% rate. International financial market participants such as banks Morgan Stanley, Barclays, and private financiers Hayfin Capital Management, Oaktree Capital, and Strategic Value Partners have expressed readiness to finance. This is a significant and positive signal of trust.
At the same time, I have instructed the Ministry of Transport to declassify restricted government documents related to airBaltic, so that the public finally has full information about the decisions made within the company, the use of state money, and the consequences of those decisions.
The most important news for passengers is that airBaltic continues operations, the planes continue flying, and purchased tickets remain valid. This is not yet the finish and not a victory statement. But a process that addresses airBaltic's problems at their core has finally begun.
My statement on airBaltic
Today, airBaltic is initiating financial restructuring in a US court under Chapter 11. This time we are not buying a few more months of life support for the airline. We are beginning to solve problems at their core.
It must be admitted that negotiations with bondholders were not progressing. Several investors, who had bought the bonds on the exchange at about 70 percent of their nominal value, were more reliant on airBaltic's liquidation and recovery of pledged assets rather than on restructuring the company.
Another loan of up to 257 million euros at an annual rate of 25% was offered. That could provide the company with money for the near term, but would not solve either the previously accumulated debt or the problem of aircraft lease obligations. Therefore, I did not accept this offer as a long-term solution.
Chapter 11 is a US court-supervised financial restructuring that allows airBaltic to continue flying while restructuring debts and lease agreements and attracting the financing needed for operations.
Simply put, it is a protective shield that gives the company time and legal protection against creditor claims, allowing management to implement a full restructuring plan.
This does not yet mean that all of airBaltic's problems are solved. But this is one of the best currently possible solutions to ensure the company's viability and give it the chance to stand on its own feet.
For the process, airBaltic has received commitments from financiers to provide 350 million euros in new financing at a 12% rate. International financial market participants such as banks Morgan Stanley, Barclays, and private financiers Hayfin Capital Management, Oaktree Capital, and Strategic Value Partners have expressed readiness to finance. This is a significant and positive signal of trust.
At the same time, I have instructed the Ministry of Transport to declassify restricted government documents related to airBaltic, so that the public finally has full information about the decisions made within the company, the use of state money, and the consequences of those decisions.
The most important news for passengers is that airBaltic continues operations, the planes continue flying, and purchased tickets remain valid. This is not yet the finish and not a victory statement. But a process that addresses airBaltic's problems at their core has finally begun.
🗣️ Prime Minister Andris Kulbergs (AS) said in the debates that 3,500 ministry employees cost the state 2 billion euros a year. That is not true – this sum is allocated to almost 60,000 state budget institution employees. 👉🏻 We explain: https://t.co/vB6bJR1wbZ#vēlēšanas2026