Lenders of low-cost carrier Go First are said to have set up a Committee of Creditors (CoC) alongside a discussion with the airline’s executives over the various ways that could be taken up for the insolvency proceeding further. Meanwhile, another report said, the lenders have appointed Shailendra Ajmera as a resolution professional (RP) in the matter.
However, Go First has not yet confirmed the development.
As per the PTI report, sources told that the representatives from all four banks — Bank of Baroda, Central Bank of India, IDBI, and Deutsche Bank — visited the Go First office on Friday and after a meeting, they set up the CoC.
It needs to be noted that LiveMint could not independently confirm the appointment of the resolution professional.
But, these sources added that the new resolution professional is expected to be appointed on June 12, and the lenders have suggested one name each from KPMG and EY.
On the other hand, CNBC-TV18 reported that the CoC has appointed Shailendra Ajmera as a resolution professional (RP) in the airline’s insolvency case.
According to these sources, the CoC will look into the revival plan for the cash-strapped airline and once the required approval is done, the same will be submitted to the Directorate General of Civil Aviation (DGCA).
Earlier, in the current month, Go First submitted a revival plan to the aviation regulator. Under this plan, the airline has proposed to resume operations with a fleet of 26 aircraft — of which — 22 for active operations and 4 for reserve — and 152 daily flights.
Also, the sources have indicated that the airline will need at least ₹400 crore of funding.
Last month, Go Airlines, now rebranded as Go First, has been granted bankruptcy protection by the National Company Law Tribunal (NCLT).
The low-cost carrier had filed for bankruptcy after reporting loss due to “faulty” Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. On the other hand, the US engine maker said that the claims were made without evidence.
Notably, an Indian airline has voluntarily applied for bankruptcy protection to renegotiate its contracts and debt for the first time. The decision can prove to be a saviour for the airline, but a big headache for its foreign partners who have leased their aircraft to Go First airlines.
(With inputs from PTI)
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Updated: 09 Jun 2023, 11:06 PM IST