Latvian Political Monitor

From@ltvzinas

🔹This morning, an interview with Prime Minister Andris Kulbergs (AS) about grain cargo transit, the further future of airBaltic, and politicians' responsibility for their actions. 🔹Musician Patriks Peterson has released a new single “Kādu dienu” and is preparing to release his debut album. 🔹And to celebrate film director Jānis Streičs' 90th birthday, a grand concert performance “Mans draugs Jānis Streičs” is planned. We'll hear about it at the end of the program.

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From@AndrisKulbergs

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.

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From@citskovskisj

Sensing the smell of burning, JV is feverishly pushing its party people into lucrative positions. Tomorrow at the Cabinet meeting they will consider the appointment of the advisor Skrodele to the Liepāja SEZ board, who is an advisor to Transport Minister R. Kozlovskis. For more than 2 years the board managed without a representative from the Ministry of Transport, but now a month before the elections there is such haste. Liepāja SEZ board meetings average once a month, but the salary is about 35k per year. When members of the Cabinet and the NGO Memorandum Council were paid a measly 61 euros for attending meetings, @AndrisKulbergs raised a huge fuss. He called it 'sitting around' and eliminated the compensation. Where is Andris this time? This time he won't eliminate it, because the Liepāja SEZ board also includes their own from the United List. Back in 2024, the State Chancellery prepared amendments to the law to prohibit public officials from combining positions with the Liepāja SEZ and free port boards. We also planned to significantly reduce the remuneration of board members. After lobbyists visited Siliņa, everything was adjusted. After all, one must support one's own.

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From@Oslejs

1) I have no idea what Lufthansa thinks, but if the example is SAS restructuring, then the Danish government and AirFrance-KLM invested in SAS only after all disputes over the bond conversion value, previous ownership, etc. had ended. 2) Everyone can earn more money if the airline flies. Selling off assets is not really a profitable business. 3) The Latvian state wants to privatize airBaltic, not become the main owner.

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