The resolution professional of Go First Airlines Mr Shailendra Ajmera has sought Rs 425 crore in interim finances from the various financers in the airlines to execute a revival plan that would ensure the restart of airline operations in a full-fledged manner, as per the reports by Economic Times.
As per the report, the requirement for financing could be expanded based on factors such as the availability of working engines for aircraft as well as ticket cancellations.
The proposal for funds was put before Go First’s committee of creditors which includes the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank earlier this week. The Directorate General of Civil Aviation (DGCA) is yet to give approval to the airlines to restart operations. The approval is subject to the availability of adequate finances with the airlines. The creditors would need to approve the financing before DGCA so that Go First is greenlit to initiate restart of operations.
Go First filed for insolvency under the section 10 of Insolvency and Bankruptcy Code which led the company be a part of a court process for debt resolution. While submitting its insolvency application with National Company Law Tribunal (NCLT), the airlines said that it had defaulted on payments of Rs 2,600 crore to aircraft lessors and Rs 1,200 crore to vendors.
On June 24, Go First announced the extension to cancellation of flights till June 28 due to operational reasons. Earlier the flight was cancelled till June 24.