Go First lenders are looking to favour the airline’s request for Rs 400 crore interim funding in order to restart the operations.
As reported earlier, Go First halted its operations on May 2 and filed the application for insolvency on May 10. Today the airline’s resolution professional Shailendra Ajmera submitted a proposal and revival plan for the airline worth Rs 400 crore before the Committee of Creditors (CoC).
The creditors which include names like Bank of Baroda, Central Bank, Deutsche Bank and IDBI Bank have a collective exposure of Rs 6500 crore to the airline.
A person familiar with the process said, “The bank representatives met on Thursday and discussed the funding request, the revival plan has been analyzed and lenders are expected to decide in next two to three days after which additional funding will be released.”
The additional funds will be treated as interim finance which has priority over all the other debts in the insolvency process. The airline plans to operate 150 daily flights with 22 aircrafts in the initial phase. Ajmera along with other senior executives at Go First have approached DGCA to restart operations which the airlines operator intends to start from July 1.
Go First is also in legal tussle with aircraft engine manufacturer Pratt & Whitney (P&W) in which the airline operator secured an interim relief from Singapore International Arbitration Centre on March 30 when it directed P&W to supply certain quantity of engines to Go First till December 2023.
