AirBaltic postpones key bondholder meeting

By Andrius Sytas

VILNIUS, Sept 11 (Reuters) - Latvia's airBaltic has rescheduled a meeting of bondholders that had been due to take place on Friday, the carrier said in an email to Reuters, as it works to shore up its finances.

"The bondholders' meeting has been postponed to allow bondholders additional time to review the draft resolution and submit their voting instructions in a timely manner", the airline said.

The virtual meeting is now set to take place on September 15.

The carrier, which is majority owned by the Latvian state, has said it is seeking financing from bondholders as it races to avert the risk of default.

AirBaltic had asked bondholders to approve a plan on Friday to raise up to €257 million ($298 million) through new super-senior debt due in 2027.

The carrier is a test case for the wider airline market where weaker operators that struggle to pass on higher costs face the biggest pressure from soaring jet fuel prices caused by the Iran war.

The new bonds would take priority for repayment from collateral — which includes eight aircraft and seven engines — while notes due in 2029 would fall to third priority, which analysts said could be behind a spike in yields this week.

($1 = 0.8613 euros)

(Reporting by Andrius Sytas. Editing by Terje Solsvik and Mark Potter)