2023-06-07 16:12:07
Go First’s first Committee of Creditors (CoC) meeting is to be held on Friday — June 9. According to Ministry of Civil Aviation sources, the lenders to Go First met with the Directorate General of Civil Aviation (DGCA) on Wednesday, to discuss the airline’s revival plan and its funding requirements.
Two top officials told businessline that Go First’s creditors are set to meet on Friday. Meanwhile, people in the know also told businessline that lenders to Go First met the DGCA officials to go through the contours of the airline’s revival plan. They also expressed their concerns over funding the airline. DGCA sources said that a clarity on funding is likely on Friday.
Meanwhile, banking sources said that the meeting will also focus on discussing the appointment of Abhilash Lal, who is the interim resolution professional as the resolution professional.
Banks’ exposures
The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its financial creditors, with a total exposure of ₹6,521 crore as of April 28.
Central Bank of India has some of the largest exposures to the airline — ₹1,305 as of March-end, or 0.91 per cent of the total advances, with an additional ₹682 crore sanctioned under a government-backed emergency credit guarantee scheme.
Also read: PMO to hold review meeting with Civil Aviation Ministry on June 8
A banker said that the banks are willing to disperse the sanctioned amount to Go First as interim finance under ECLGS to keep the airline afloat. Beyond that, nothing has been discussed, it is learnt.
DGCA evaluating
Addressing reporters on Wednesday, Jyotiraditya Scindia, Civil Aviation Minister, said that the DGCA is currently evaluating the airline’s revival plan. He also mentioned that the DGCA had raised some queries, and Go First is expected to respond. Once the DGCA approves the plan, progress can be made, he said.
However, in a town-hall meeting with pilots, Kaushik Khona, CEO of Go First, said that the airline hopes to get an approval within the next 7-10 days.
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