Go First is seeking funding of $12 million an urgent basis to cover some of its mandatory liabilities, such as insurance, reports Economic Times. The airline stopped operations in May and has been trying to get its finances in order, hoping to start flying again.
Citing sources close to the airline, Economic Times report states that the airline is trying to arrange funds for things like aircraft repair, among other things.
“Go First’s resolution professional Shailendra Ajmera, has requested the banks for funds on the basis of their voting share within the committee of creditors (CoC). Bank of Baroda and Central Bank hold 72% of the voting share, while Deutsche Bank has a 25% of the voting share, and IDBI Bank has the rest,” as per sources.
Earlier this month, it was reported that Go First could get more cash than planned and restart operations with a limited fleet. The airline could restart operations with a funding of around INR 6-7 billion more than the initial interim funding of INR 4-5 billion sought.
But the carrier also has to modify its flight resumption plan. Earlier, Go First was supposed to restart flights with a fleet of around 26 airplanes. But with more funding, it will start at a smaller scale with about 10-15 aircraft.