Bank of Baroda has set aside INR 5 billion against an advance to GO First, apart from the collateral for part of the loan.
Sanjiv Chadha, Managing Director and Chief Executive Officer (MD and CEO), Bank of Baroda said: ““We have INR 10 bn collateral on tangible securities and INR 5 billion as provision in this quarter.”
Earlier the bank has lent INR 14.3 million to GO First.
Meanwhile other banks and lenders are not looking at lending further to Go First before the completion of resolution process.
The airline owes lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank and IDBI Bank approximately INR 6.52 billion, as per the filing
Meanwhile, the airline is planning on resuming its flight operations on May 27, sources claim. The airline has already started refreshing course for pilots because of the pause on flights since May 3.
However, experts believe that the resumption of operations is still under doubt as half the fleet is still grounded. Furthermore, the airline is in trouble with the aircraft lessors, facing termination of lease agreements. These lessors are currently contesting the bankruptcy court's decision to place a moratorium on aircraft in court.