AIRBALTIC • BT / BTI

AirBaltic Chapter 11 Restructuring Plan & Creditor Recovery Workbench

COURT-APPROVED REORGANIZATION PATH
Reorg Recovery Rate
74.8%
Blended across all creditor classes
Secured Recovery
100.0%
Class 1 • Fully collateralized asset pool
Unsecured Recovery
65.0%
Class 3 • Post 35% plan haircut
Liquidation Recovery
51.2%
Chapter 7 distress baseline fallback
Net Restructuring Benefit
+$195.4M
Reorg surplus vs. liquidation proceeds
Restructuring Levers
Going-Concern Asset Valuation $620M
Appraised fleet, slots, and operational airline enterprise value.
Unsecured Debt Haircut 35%
Principal write-down agreed by noteholders and trade creditors.
Debt-to-Equity Swap 50%
Portion of remaining unsecured claims converted to new common shares.
Chapter 11 Administrative Costs $45M
Legal, turnaround advisory, and court administration expenses.
Ch. 7 Liquidation Discount 30%
Fire-sale aircraft and engine auction markdown penalty.
Reuters Filing Background: AirBaltic secured court sanction to proceed with debtor-in-possession operational stability under Chapter 11. Adjusting the haircut above alters unsecured creditor equity dilution and preserves airline liquidity.
Creditor Recovery Waterfall (D3)
Class-by-Class Restructuring vs. Liquidation Analysis
Claim Class Claim Pool Reorganization Payout Reorg Rec. % Ch. 7 Liquidation Liq Rec. % Surplus
Restructuring plan exported successfully.

AirBaltic Creditor Recovery Waterfall Mechanism

Read the explanation

In Chapter 11 restructuring, total creditor claims of eight hundred fifty million dollars are settled against going concern enterprise assets. Secured aircraft debt holds absolute collateral priority, achieving full one hundred percent repayment across reorganization scenarios. Adjusting the unsecured haircut from thirty-five to fifty percent compresses noteholder recovery, transferring value to capital preservation. Reorganization retains fleet going-concern value, delivering an illustrative surplus over distressed Chapter 7 auction liquidation.

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