Go First Bankruptcy: Airline secures around Rs 400 crore interim funding

Lenders of cash-strapped Go First airline has approved around Rs 400 crore as an interim fund, reported Money Control. This, after Go First requested the lenders for survival capital and promised to get back to normalcy in operations at the earliest.

As per Money control, the Committee of Creditors that include Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank had approved the fund on Saturday night. The lenders have approved the request based on the business plan and to support revival of operations.

Money control also quoted a source and said that the lenders are ready to provide additional contingency funding as and when required later for specific events.

Go First has been cancelling its flights and was looking for fundings to re-start its operations. The airline plans to resume its operations in July and operate 78 daily flights with 22 aircraft. However, regulatory approval is required for the airline to start operations and now all eyes are on the DGCA as Go First has secured the funding.

Go First had announced that it is filing for voluntary insolvency resolution proceedings before the National Company Law Tribunal on May 2. The airlines blamed the faulty engines of Pratt & Whitney for its ordeal.