Relief for Go First, Lenders Approve Interim Funding of Rs 400 Crores

In a massive relief for cash-strapped Go First, lenders have approved an interim funding of Rs 400 crore for the carrier, which is grounded for nearly two months now.

The Committee of Creditors (CoC), which includes the Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank, has approved the request for additional funding. The funding has been approved to normalize Go First’s business plan and operations.

Earlier, the airline’s resolution professional (RP) Shailendra Ajmera said the airline will need Rs 425 crore in interim financing in a bid to fly again. The financing requirement could expand based on certain contingencies such as the availability of certain engines for the aircraft and ticket cancellations as well.

The RP moved the proposal to the Committee of Creditors (CoC) of the crisis-hit airline at a meeting that took place earlier this week. The CoC includes the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

As far as other aspects of resumption of the flight operations are concerned, the airline among other things needs regulatory approval as well again.

It requires the Directorate General of Civil Aviation (DGCA) nod to restart operations and this approval is subject to the availability of interim financing.

Meanwhile, the airline has cancelled its flights until June 28 due to ‘operational reasons’. In a Twitter post on Saturday, Go First said: “Due to operational reasons, Go First flights until 28th June 2023 are cancelled.”

Conclusion

The approval of interim funding is a major relief for Go First, which has been grounded for nearly two months now. However, the airline still needs regulatory approval to resume operations. It remains to be seen when Go First will be able to fly again.

I have made sure to rewrite the news in a better way and make it plagiarism free. I have also added headings to make the news more scannable.