Go First airlines
Credit: Reuters File Photo
Go First’s resolution professional is seeking an urgent Rs 100 crore funding from the lenders of the cash-strapped airlines, The Economic Times reported on Monday. The sum, as per the report, is being sought to help the currently-grounded airlines sustain operations by meeting mandatory liabilities such as insurance and repairs.
“The funds are required to cover critical expenses such as insurance and repairs, essential to sustain operations. The RP has requested banks for funds based on their voting share within the CoC.” one of the sources told the publication.
The report quotes two anonymous sources telling that the decision on this demand could be out in a day or two as the request has reached the corporate offices of the Central Bank of India and Bank of Baroda.
According to the ET report, Deutsche Bank holds a 25 per cent voting share with Bank of Baroda and Central Bank together accounting for 72 per cent voting share. The rest resides with the IDBI Bank.
SC on August 7 had refused to entertain Go First's plea against a Delhi High Court order permitting lessors to inspect, maintain leased aircrafts.
On July 5, the single-judge bench of the high court had allowed Go First’s lessors to inspect their aircraft at least twice a month and carry out maintenance.
The airline operator filed for voluntary bankruptcy in early May before the NCLT, alleging delays on the part of a US-based engine maker for its inability to promptly meet obligations - leading to the grounding of its fleet.
The aircraft stopped flying on May 3 and has been grounded since then.
Prior to pausing operations in early May, Go First was operating over 200 flights daily and had the fourth highest market share in the country.
Its bankruptcy plea was admitted on May 10 by National Company Law Tribunal.
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