Originally Posted by
1201alarm
www.aerotelegraph.com/airlines/muessen-staat-oder-lufthansa-helfen-steigender-kerosinpreis-treibt-air-baltic-in-die/8gq22y1
What is going on at Air Baltic?
Article put through translator: article says because of nearly doubled jetfuel prices Air Baltic is trying to restructure its debt now. The main problem according to the article is a bond with a supposingly interest rate of 14.5% and a value of 380 million Euro and would only be due for payback in 2029. Apparently this bond is currently traded at only 41% of its nominal value. Wow. The financial market does not seem to have a good expectation.
Short term debt increased by 121 million Euro to 474 million Euro, and profit margin in 2025 was -5%.
What strikes me is the restructuring of the debt now while the critical bond is only due in 2029. Why would any investor let go of his high risk premium now or delay the payback of a risky investment?
They lost another 45 millions in 2025, long before the fuel prices rise
I believe they are just using the fuel prices as an excuse for the bankruptcy and the hundred of millions of Latvians taxpayers money that were used to keep this business alive till now
Pure post soviet politician show