Big relief for Go First! cash-strapped airline gets Rs 400-crore interim funding approval from lender to start operations | The ball's in DGCA court now
Big relief for Go First cash-strapped airline gets Rs 400-crore interim funding approval from lender to start operations The balls in DGCA court now

In a massive relief for cash-strapped Go First, lenders have approved an interim funding of Rs 400 crore for the carrier, which is grounded for nearly two months now, as per a media report.

The Committee of Creditors (CoC), which includes the Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank, has approved the request for additional funding, the report said, citing sources.

A top banker of the consortium bank was quoted as saying in the report that the lenders have approved funding of Rs 400 crore. This funding has been approved to normalize Go First’s business plan and operations. Another person having knowledge of the matter has also confirmed it. Quoting another person, the report said that the request for interim finance has been approved by the creditors. Funding has been approved after the voting process on Saturday, as per the report.

Earlier, the airline’s resolution professional (RP) Shailendra Ajmera said the airline will need Rs 425 crore in interim financing in a bid to fly again. ET NOW sources revealed that the financing requirement could expand based on certain contingencies such as availability of certain engines for the aircraft and ticket cancellations as well.

The RP moved the proposal to the Committee of Creditors (CoC) of the crisis-hit airline at a meeting that took place earlier this week, according to a report in The Economic Times. The CoC includes the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

As far as other aspects for resumption of the flight operations are concerned, the airline among other things needs regulatory approval as well again.

Meanwhile, the airline has cancelled its flights until June 28 due to ‘operational reasons’. In a Twitter post on Saturday, Go First said: “Due to operational reasons, Go First flights until 28th June 2023 are cancelled,” the airline said in a tweet and expressed regret for the inconvenience caused to the flyers.

Article source: https://airlines.einnews.com/article/641391325/AjrtAtkz7PU12S3S?ref=rss&ecode=vaZAu9rk30b8KC5H

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