Driving Naari Programme launched in Chandigarh
Go First creditors have approved an interim funding of Rs 425 crore to revive the cash-strapped airline, according to a Economic Times report on Sunday.
Though the airline has secured in-principle approval for the interim finance, the plan is subject to the boards of the concerned banks approving the same. This has come as a big relief to the beleaguered airlines in its ongoing efforts to keep the struggling airline afloat.
The low-cost airline’s resolution professional Shailendra Ajmera had asked Rs 425 crore in interim finance from the airline’s financiers to get a revival plan going that could help resume operations, said the report quoting multiple sources on Saturday.
Central Bank of India (CBI), Bank of Baroda, and IDBI Bank are the consortium lenders to the airline. They will seek board approvals to sanction the interim finance. Following this DGCA approvals will be sought to start the airline’s operations.
The proposal for funds was put up to the committee of creditors of Go First at a meeting that occurred earlier this week.
The cash-strapped airline is reportedly planning to start operations in July and operate 78 daily flights with 22 aircraft. Aircraft of the low-cost carrier have been grounded since May 3.
According to Reuters, Go First owes approximately Rs 652.1 crore to the Central Bank of India (CBI), Bank of Baroda, IDBI Bank, and Deutsche Bank are among Go First’s financial creditors.
Go First announced on Saturday (June 24) that its scheduled flight operations will remain cancelled till June 28 because of operational reasons, and a full refund will be issued to the passengers.
On May 2 this year, the low-cost carrier filed for voluntary insolvency proceedings before the National Company Law Tribunal (NCLT) and the plea was admitted on May 10.
The airline’s operations have been stalled since then. The company earlier stated it had filed an application for a speedy resolution and revival of operations
