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The Collateral Did Not Move. Your Priority Did: What Rescue Finance Reveals About Secured Claims
airBaltic’s proposed rescue financing shows why “senior secured” is not a permanent property of a debt instrument. The airline is seeking approval to raise up to €257 million of new super-senior debt that would rank ahead of existing 2029 bonds against collateral including eight aircraft and seven engines, while some existing holders could exchange into a new second-priority tranche and the remaining 2029 notes would fall to third priority. The collateral itself does not need to move for the...
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- creditor priority restructuring rescue finance
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