In a relief for Go First, the airline’s lenders have granted approval for an interim funding of approximately INR 4000 million, as per sources. This is a huge step in the airline’s efforts to revive commercial operations and keep the carrier afloat. While an in-principal approval for the interim finance has been granted, the plan is subject to the boards of the respective banks approving the same.
The Committee of Creditors (CoC) that include Central Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank approved the request for additional funding. The banks will now seek board approvals to sanction the interim finance. Post which DGCA approvals will be sought to start the airline's operations.
The lenders may be open to additional contingency funding as and when required later for specific events
Go First appealed to the lenders for additional funding in order to resume operations.
Go First reportedly plans to resume operations in July and operate 78 daily flights with 22 aircraft. GO First have grounded its fleet since May 3.
Go First owes INR 65.21bn to its lenders. Central Bank of India had the highest exposure of INR 19.87bn, followed by Bank of Baroda at INR 14.30bn, Deutsche Bank at INR13.20bn and IDBI Bank at INR 580 million.
Now the decision rests with the Director General of Civil Aviation (DGCA) who is currently examining Go First’s application to resume operations.
On May 2, Go First filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.