Cash-strapped Go First airlines's lendors approved the interim funds of Rs 425 crore to revive operations, subject to board approvals and DGCA clearance.
Mumbai: Finally there is a sign of breaking the deadlock of Go First. It is learned that the lenders are going to help the airline with a huge amount. The airline had declared bankruptcy last month. Due to this, all flights of the airline have been canceled for the time being. In such circumstances, the decision of the lenders will give relief to Go First.
It is known that the special committee of lenders has agreed to temporarily lend to Go First. There are four banks in this committee. Central Bank of India, Bank of Baroda, Dutch Bank and IDBI Bank have decided to give a loan of Rs 400 crore for the time being. The loan application has been sanctioned so that services which have been completely stopped can be resumed quickly.
Go First's flights have been irregular since early May. After receiving a show cause notice from DGCA, they said it was impossible for them to continue the service due to insolvency. After that, Civil Aviation Minister Jyotiraditya Scindia said that the Center will stand by the distressed airlines.
However, it is known that Go First asked for a loan of Rs 600 crore. Out of that, lenders have agreed to pay Rs 400 crore. However, Go First already has a mountain of debt with these four banks. Four banks have agreed to help the airline even after a debt of Rs 6500 crores. According to sources, GoFirst's flight services may resume from the beginning of July.
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