Air Baltic Bondholders Hire Lawyers as Restructuring Fears Mount

A group of Air Baltic Corp’s bondholders have hired legal advisers as Latvia’s state-backed airline scrambles to deal with its dwindling cash reserves and soaring fuel prices.

The law firm Hogan Lovells has been selected by bond investors to provide advice ahead of potential negotiations over the terms of the debt, according to people familiar with the matter, speaking on condition of anonymity.

Air Baltic’s €380 million ($445 million) bonds coming due in August 2029 trade at deeply distressed levels. The notes started the year marked around par, but are now quoted at 31 cents on the euro, according ...