EY India, the designated process adviser for Go Airlines (India) Ltd’s corporate insolvency resolution process, is expected to recommend a substantial infusion of up to ₹500 crore by the airline’s lead creditors. This move aims to facilitate the immediate resumption of flight operations, aligning with the recent revival of air passenger traffic in India’s aviation industry. A reliable source familiar with the matter shared this information.
The person, who spoke on the condition of anonymity, revealed that the committee of creditors (CoC) has informally accepted the proposal for interim finance and cash-and-carry based flight operations. This proposal is a significant step toward reviving Go First’s operations.
To support the resumption of flight operations on a cash-and-carry basis, the interim finance will range from ₹200-500 crore, depending on the demand and scale. Go First currently owes approximately ₹2,500 crore to its lenders and around ₹8,500 crore to its lessors.
The person further explained that the proceeds from the interim finance will primarily be utilized to meet monthly lease rentals owed to the lessors. As the airline generates cash from its operations, it can allocate these funds towards repaying its creditors. Eventually, once the airline achieves a break-even point, it will be in a better position to settle its outstanding dues with the lessors.
Acceptance of the cash-and-carry proposal by the lessors holds the potential for improved recovery prospects, highlighting the significance of this development.
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