HomeBusinessGo First gets claims worth ₹23,777 crore from creditors

Go First gets claims worth ₹23,777 crore from creditors

As part of the current insolvency of the airline, Go First Airlines (India) Ltd has so far received claims totaling 240 billion rupees ($2.9 billion) from operational and financial creditors.

The procedure complies with Indian law’s procedural standards, which give every creditor a right to payment and redress by presenting claims in the event of a company’s bankruptcy. After the claims are filed, the resolution specialist must verify their validity.

“Claims from the lenders are around 50 billion rupees, while lessors’ claims amount to 180 billion rupees so far,” a banker with a state-run bank, who has exposure to Go First Airlines told the media, after a meeting of the committee of creditors on Friday.

Because they were not licensed to speak to the media, the bankers did not want to be named.

However, the resolution specialist for Go First Airline has not yet confirmed the accuracy of the claims.

Go Airlines, the company that ran Go First, filed for bankruptcy protection in May, attributing the groundeding of roughly half of its 54 Airbus (AIR.PA) A320neos to “faulty” Pratt & Whitney engines.

The assertions are unfounded, according to the engine manufacturer controlled by Raytheon.

A court-appointed administrator was used by the corporation earlier this month to solicit investment interest. Expressions of interest must be sent by August 9 in order to be considered.

Go First Airlines could resume operations, according to India’s aviation regulator DGCA, if it can fulfill a number of requirements, including obtaining temporary funds and receiving clearance for its flight schedule.

The banker stated that the resolution professional is waiting for banks to release funds for which in-principle approval was granted last month in order to commence activities.