Go First asks lenders for Rs 100 crore emergency funding: Report

Beleaguered low-cost airline Go First has reportedly sought an emergency funding of Rs 100 crore from its lenders to keep itself afloat. Go First’s resolution professional Shailendra Ajmera, backed by EY, has sought the funding in order to meet the airline’s mandatory liabilities such as insurance. 

According to a report in The Economic Times, the funding will be used by the airline for critical expenses, the RP told the committee of creditors. A source told the daily that it will be used for insurance and repairs, which are critical to sustain the operations of Go First.

The report added that the banks have been requested for funds brd on their voting share within the CoC. The request has reportedly gone to the corporate offices of the Central Bank of India and Bank of Baroda. A decision is expected in a couple of days.  

Bank of Baroda and Central Bank have 72 per cent voting share, Deutsche Bank has 25 per cent voting share, and IDBI Bank has the remainder. 

Meanwhile, Deutsche Bank reportedly told RP Shailendra Ajmera that it has settled its loans with the promoters, Wadia Group. It also expressed that it wants to relinquish itself as a member of the CoC since its debt has been settled separately with the promoter, as per a separate report by the financial daily. As per the initial claims, Deutsche had filed for a Rs 1,365-crore claim as unsecured creditors. The bank has not disclosed how the debt was settled.  

The airline initiated bankruptcy protection in May. It blamed Pratt & Whitney for delivering ‘faulty’ engines that led to the grounding of nearly half of its 54 Airbus A320neos that exacerbated its financial woes. The engine-maker responded that their engines had nothing to do with Go First’s financial problems, which were of its own making. 

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