Go First’s resolution professional (RP) Shailendra Ajmera has sought ₹425 crore in interim finance from the airlines financiers for a revival plan going that could help restart airline operations, according to a report by Economic Times. The requirement for financing could expand based on certain contingencies such as the availability of working engines for the aircraft as well as ticket cancellations, said the report.
The proposal for the funds was put up to the committee of creditors of Go First at a meeting that took place earlier this week. The committee of creditors includes Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank, according to the report.
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Aviation regulator directorate general of civil aviation (DGCA) has to give its approval for the airline to restart operations. However, the approval is subject to the availability of financing for the airline.
Creditors need to approve the financing proposal before DGCA gives its consent for the airline to restart operations, said the report. Go First filed for insolvency under Section 10 of the Insolvency and Bankruptcy Code (IBC), which allows a company to voluntarily submit itself to a court process for a debt resolution when its business becomes unfeasible.
In its application for voluntary insolvency with the National company law tribunal (NCLT), Go First said it had defaulted on payments of ₹2,600 crore to aircraft lessors and of ₹1,200 crore to vendors.
Go First has further extended its flight cancellation on June 24. The airline said that scheduled flight operations will remain cancelled till June 28 due to operational reasons. Earlier, the flights were cancelled till June 24.
“We regret to inform that due to operational reasons, Go First flights scheduled till 28th June 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations,” Go First said in a tweet. “We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can,” they said in a letter.
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Updated: 24 Jun 2023, 05:10 PM IST