Go First's lenders approve $55 mln fund infusion to revive bankrupt Indian carrier - sources

Central Bank of India

26/06/2023 08:08

By Siddhi Nayak
       MUMBAI, June 26 (Reuters) - Lenders to India's Go First,
which is under bankruptcy protection, have approved interim
funding of 4.50 billion rupees ($54.9 million) to resume
operations and restart the airline, two banking sources said.
    Go First was granted bankruptcy protection on May 10.
Reuters reported last week that the airline has sought 4 billion
- 6 billion rupees in additional funds from banks.
    "This interim funding does not come with collateral, it will
be a part of the insolvency cost and will be given priority over
other dues," said one of the bankers.
    The promoters, however, have indicated that they do not
intend to infuse more funds into the airline, the second banker
said.
    Both bankers did not wish to be named because they were not
authorised to speak to the media.
    The Go First bankruptcy filing lists Central Bank of India
 CBI.NS , Bank of Baroda  BOB.NS , IDBI Bank  IDBI.NS  and
Deutsche Bank  DBKGn.DE  among its creditors, to which the
airline owes a total of 65.21 billion rupees.
    Now that lenders have given funding approval, the ball is in
the aviation watchdog's court to make checks and approve the
airline's business plan, both the bankers said. The company's
resolution professional will have to handle that process, they
added.
    Lessors of Go First have locked horns with the airline and
the Directorate General of Civil Aviation (DGCA) to reclaim its
planes for missed payments, with requests to the watchdog to
allow repossession.
    Go First plans to operate 78 daily flights with 22 aircraft,
as per the company's revival plan presented to lenders last
week.

($1 = 81.9550 Indian rupees)

 (Reporting by Siddhi Nayak; Editing by Dhanya Ann Thoppil)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848;))