Go First Receives Lender Approval For $55 Million Fund Infusion To Restart Operations

Low Cost Airline, Go First lenders have reportedly given their approval for a fund infusion of $55 million to resume operations and restart the airline, two banking sources said.

Go First received permission to file for bankruptcy on May 10.The airline has reportedly asked banks for an additional 4 to 6 billion rupees, according to Reuters' report from last week.

"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 second banker noted that the entrepreneurs, however, have made it clear that they do not plan to invest more money in the airline.

Due to the fact that they were not licensed to speak to the media, the two bankers did not want to be identified.

Go First identified the Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS), Central Bank of India (CBI.NS) and Deutsche Bank (DBKGn.DE) as creditors in its bankruptcy petition. The airline owes these institutions a combined amount of 65.21 billion rupees.

The aviation watchdog must conduct checks and approve the airline's business plan now that financiers have approved finance, according to both bankers. That procedure will be handled by the company's resolution specialist, they stated.

Go First's lessors are at odds with the airline and the Directorate General of Civil Aviation (DGCA) over the right to repossess their aircraft due to unpaid lease obligations.

According to the company's resurrection plan, which was presented to lenders last week, Go First intends to operate 78 flights each day using 22 aircraft.