Financially distressed lenders to Go First Airlines decided Wednesday to await the decision of the National Company Law Court (NCLT) on the airline’s request for a ruling and to hear from the company before taking a call on how best to protect your interests.
In a meeting, the lenders took stock of the situation arising from the airline’s filing for resolution proceedings under the Bankruptcy and Insolvency Code 2016. Banks, including Central Bank of India (CBoI), Bank of Baroda (BoB ), Deutsche Bank and IDBI Bank, collectively have an exposure of around ₹6500 crore to the Wadia-owned airline.
The airline claimed it has grounded 28 aircraft, which is more than half its fleet, due to a lack of engine supply from Pratt & Whitney (P&W). Rising vendor and landlord fees also added to their problems.
CBoI said on Wednesday that its outstanding exposure to Go First Airlines as of March 31, 2023 was ₹1,305 crore. An additional amount of ₹682 crore was sanctioned under the Emergency Credit Facility Guaranteed by the Government of India.
“Our exposure to the company is only 0.91 percent of our total advances as of March 31, 2023, and the company pays interest collected through April 30, 2023,” the public sector bank said in a document. regulatory. The bank emphasized that in the recently released financial results for FY23, it has made contingency provisions of more than Rs 1,500 crore to strengthen the balance sheet.