Go First gets nod for Rs 450cr interim funds - Indiatimes.com

Mumbai: Go First, the low-cost carrier currently under bankruptcy protection, has received approval for interim funding of Rs 450 crore from its lenders. The funding, approved during a joint lenders’ meeting over the weekend, is crucial for revival after the company’s aircraft were grounded in May following insolvency proceedings.
The decision to grant in-principle approval for the interim funds was made during the meeting, subject to the respective boards of the banks providing their final approval. The consortium of lenders includes Central Bank of India, Bank of Baroda, and IDBI Bank.
Go First had earlier indicated that the airline may require only Rs 200-250 crore to restart operations. This is because it anticipates generating cash once operations commence.
Bankers said that any interim finance provided during insolvency proceedings has priority over all other creditors. Also, the funds will be released subject to the airline getting permission from the director general of civil aviation (DGCA) to resume flights.
According to the insolvency filings, the total debt of the airline is around Rs 6,521 crore. The company’s resolution professional, Shailendra Ajmera, will oversee this process. Go First aims to resume operations with 22 aircraft, operating 78 daily flights, as outlined in the revival plan presented to the lenders.
According to analysts, the key to the revival will be regaining passenger trust. The airline had earlier indicated that it would focus on military charter flights and subsequently transitioning to commercial operations.

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Go First gets nod for Rs 450cr interim funds - Indiatimes.com
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