Lenders approve Rs 400 crore financing: – In a major boon to the troubled Go First, the operator’s overwhelmed lending specialists have given their backing to a mezzanine financing of around Rs 400 crore.
About three people familiar with the upgrade told Moneycontrol that it is a key stage in ongoing efforts to keep the plane booming over the water.
Latest News:- According to Moneycontrol, a senior banker whose bank is part of the consortium, lenders have approved around Rs 400 crore for Go First based on the business plan and to support revival of operations. Based on the business plan and to restart operations, the lenders agreed to provide new financing.
Lenders approve Rs 400 crore financing
The board of lenders (CoC) that includes National Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank on Saturday night backed the request for additional funding, the people cited above said.
Lenders approve Rs 400 crore funding Go First had closed the banks’ gateway to resilience capital of late, encouraging a return to predictability in tasks as soon as possible. A senior banker whose bank is part of the consortium told Moneycontrol that the lenders have approved approximately Rs 400 crore for Go First to support the restart of operations and the business plan.
Lenders approve Rs 400 crore financing overview
Lenders approve Rs 400 crore financing: To go first, DGCA decision awaited
Lenders pass the buck to DGCA court
A senior banker requesting anonymity informed Moneycontrol that the lenders provided the financing based on Lenders Approve Rs 400 Crore Funding Go First business plan to support revival of operations. According to another source, the Creditors Committee approved the provisional financing request after a voting process that took place on Saturday. According to the sources cited, lenders may be willing to provide additional contingency funds for specific events in the future if necessary.
Go First, recently known as GoAir, now owes Rs 6,521 crore to its lending specialists, with National Bank of India having the largest opening at Rs 1,987 crore, followed by Bank of Baroda at Rs 1,430 crore. and Deutsche Bank with 1,320 rupees. crore and IDBI Bank at Rs 58 crore. The beleaguered airline’s efforts to overcome its financial difficulties are being boosted by the approval of interim financing.
The next important stage of the process corresponds to the General Directorate of Common Flight (DGAC), which is studying a request presented by Go First to continue with the activities. In order for the airline to resume flight operations and start selling tickets, permission must be granted by the regulatory authority. According to sources cited by Moneycontrol, Go First intends to start operations on July 1 and cover 78 routes using approximately 22 aircraft. All partners are eagerly awaiting the DGAC’s decision after completing fleet reviews and other important checks.
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Indian aviation and the insolvency issue
The airline’s application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) on May 2 marked the beginning of the financial crisis. The Wadia Group-owned airline announced that it would temporarily suspend flight operations on May 3 and 4 due to severe shortage of funds. The airline blamed its monetary difficulties on grounded Airbus A320neos equipped with allegedly defective Pratt and Whitney engines. Pratt & Whitney, on the other hand, called these claims baseless and denied them.
Moneycontrol referred to lenders approving financing of Rs 400 crore. Go First president Kaushik Khona said the airline had grounded most of its fleet due to a lack of engine supply from Pratt and Whitney. The financial pressure facing Go First is the latest emergency in the fiercely cutthroat trucking industry for some time. Lenders have previously faced difficulties in recovering funds lent to other airlines, such as Jet Airways and Kingfisher, promoted by Vijay Mallya.
While the lenders have been able to recover a considerable part of the money they lent to Kingfisher by attaching the assets of the company’s promoter, Vijay Mallya, the fate of Jet Airways is still unknown as the bankruptcy court is still trying to save the airline. Recently, the NCLT granted Jet Airways bidders additional time to pay their dues.
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Source: vtt.edu.vn