Wadia Group Rushes To Borrow More In Bid To Revive Bankrupt Go First

The Wadia Group is reportedly looking to borrow fresh funds from lenders to revive its bankrupt airline GoFirst.

What Happened? To sustain its operations, the airline is looking to borrow up to ₹225 crore within sanctioned limits, one of the lenders associated with GoFirst told Moneycontrol.

Under the insolvency resolution process overseen by the National Company Law Tribunal (NCLT), insolvent companies can raise funds under the supervision of an interim resolution professional to ensure continued operations. The final sanction limit of funds can be determined in future discussions among GoFirst’s creditors, subject to agreement from the lenders.

The lender told the publication that banks were only willing to provide funding exclusively within the framework of the NCLT.

See Also: Go First Collapse: Which Companies Would Emerge As Winners And Losers?

The debt-ridden airline was granted bankruptcy protection by the NCLT last month but faces an audit from the Directorate General of Civil Aviation (DGCA) before it can restart operations.

Earlier reports had suggested that banks would refrain from lending to GoFirst until the completion of the resolution process. The airline is reportedly exploring loans to meet its obligations, including employee payments, settlements with oil marketing companies, and clearing dues owed to airports as it tries to restart domestic operations.

According to the filings from the airline, GoFirst owes a total outstanding debt of ₹6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank.

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