AirBaltic, the Latvian state-owned carrier, needs to find €200m to repay investors who bought bonds issued by the company in 2019.
CEO Martins Gauss believes the task is doable but suggests that the state may have to provide assistance as the majority shareholder.
Repaying the debt is a prerequisite for airBaltic’s planned listing on the Nasdaq Riga stock exchange later this year.
The company’s chief financial officer revealed that airBaltic has negative equity of €71m, which will result in higher interest rates for loans.
Despite the company’s rapid turnover growth, its most recent financial report showed that short-term liabilities exceed current assets by €352m.
AirBaltic is considering three options to repay the debt: borrowing from private lenders, issuing new bonds, or seeking help from the state.
