Go First to get Rs 400 crore funding, May start domestic operations from July

Facing financial crisis that led to suspension of its operations, Go First Airlines has been able to persuade the lenders to provide Rs 400 crore to the company to enable it to come of the difficulties.

According to the sources, a group of lenders, including major Indian banks, have agreed to provide additional funding to the struggling airliner.

Sources said that Go First would get Rs 400-450 crore initially but the lenders could consider providing more funds if needed.

The Airlines had applied for voluntary insolvency resolution process before the National Company Law Tribunal (NCLT). The flights were cancelled after this. Apart from this the Airlines was trying to arrange funds to start the domestic flights.

Now the Central Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank have accepted the additional fund request. The lenders have accepted this loan on the basis of business plan to start a new operation, officials said.

According to a report of Reuters, the Airlines had requested more funds in the meeting amounting to around four to six billion rupees. But instead of this Rs 400 crore loan has been accepted. But the lenders assured to give more money in any emergency.

Sources also said that Go First could re-start domestic operations from July.