Go First seeks urgent funding of INR 100cr to stay afloat
The resolution professional of Go First has sought an urgent funding of INR 100 crore from lenders to keep it afloat by meeting its mandatory liabilities such as insurance, people aware of the matter have told ET.
This emergency funding will be used for critical expenses such as insurance and repairs, RP Shailendra Ajmera, backed by EY, told lenders in the creditors’ committee.
“The funds are required to cover critical expenses such as insurance and repairs, essential to sustain operations,” one of the sources said. “The RP has requested banks for funds based on their voting share within the CoC.”
This comes after the Supreme Court on August 7 dismissed Go First’s plea against a Delhi High Court order permitting lessors to examine their aircraft.
The request for emergency funding has gone to the corporate office of the Central Bank of India and Bank of Baroda, and a decision is likely in the next day or two, the person cited above said.
Deutsche Bank holds a 25% voting share, while Bank of Baroda and Central Bank together have 72% voting share and IDBI Bank has the remainder.
Shailendra Ajmera did not respond to requests for comment until press time on Sunday. (Source: ET)