Latvian carrier airBaltic received approval from a U.S. court judge to enter Chapter 11 (U.S. court-supervised bankruptcy protection) and restructure its debt, Prime Minister Andris Kulbergs said on Sept. 16. The approval allows the airline to access financing, start restructuring and review its obligations to creditors. AirBaltic, which is majority-owned by the Latvian government, filed voluntarily on Monday after the Iran war increased financial pressure. The company has secured a €350 million ($404.1 million) financing commitment from certain lenders, subject to court approval. Over the coming months, it is expected to negotiate with bondholders, aircraft lessors and other creditors before submitting a formal reorganisation plan for separate court approval. AirBaltic aims to complete the Chapter 11 process around June 2027, with a reduced fleet and lower operating costs in its longer-term business plan.