×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Go First gets claims worth $2.9 billion from creditors

The bankers did not wish to be identified because they were not authorised to speak to the media.
Last Updated : 22 July 2023, 07:25 IST
Last Updated : 22 July 2023, 07:25 IST

Follow Us :

Comments

Go Airlines (India) Ltd has received claims worth 240 billion rupees ($2.9 billion) from operational and financial creditors so far as part of the carrier's ongoing insolvency, two banking sources told Reuters.

The process is in line with procedural requirements under Indian law which allow every creditor a right to payment and remedy by submitting claims if a company is under bankruptcy. Once the claims are filed, the resolution professional has to check its authenticity.

"Claims from the lenders are around 50 billion rupees, while lessors' claims amount to 180 billion rupees so far," a banker with a state-run bank, who has exposure to Go Airlines said, after a meeting of the committee of creditors on Friday.

The bankers did not wish to be identified because they were not authorised to speak to the media.

Go Airline's resolution professional has yet to verify the veracity of the claims and did not immediately respond to a Reuters' email seeking comment.

Go Airlines, which operated the Go First carrier, filed for bankruptcy protection in May blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos.

The Raytheon-owned engine maker has said the claims are without merit.

The company earlier this month invited investor interest in the company through a court-appointed administrator. The last date to submit an expression of interest (EoI) is Aug. 9.

"The airline has received 40 queries on EOIs from potential bidders, but no formal submissions have been made as yet," the second banker said.

India's aviation regulator on Friday said Go Airlines could resume operations if it can meet certain conditions, including getting interim funding and approval of its flight schedule.

The resolution professional is waiting for banks to disburse funds for which in-principal approval was given last month to resume operations, the banker said.

ADVERTISEMENT
Published 22 July 2023, 07:25 IST

Follow us on :

Follow Us

ADVERTISEMENT
ADVERTISEMENT