iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

NCLT to hear Go First’s bankruptcy plea today

4 May 2023 , 07:04 AM

Go First’s insolvency petition will be heard by India’s bankruptcy court today, May 4th .

Go First, which is owned by the Wadia group, announced on Tuesday that it has filed for insolvency resolution because it is unable to pay its debts and that 50% of its fleet has been grounded due to ‘faulty engines’ manufactured by the US business Pratt & Whitney.

According to its bankruptcy petition, Go First, which made its bankruptcy filing on Tuesday, owes its creditors Rs6,521 crore ($798 million). Go First’s financial creditors are listed in the filing as Central Bank of India Ltd, Bank of Baroda Ltd, IDBI Bank Ltd, Axis Bank Ltd, and Deutsche Bank.

According to the filing, the Central Bank of India and Bank of Baroda each have exposure under a consortium loan of Rs1,300 crore, while IDBI Bank has a lower exposure of Rs50 crore.

In accordance with a Central Bank of India official who talked to ET, the bank has a total exposure of Rs2,000 crore to the airline. The document stated that the airline has a letter of credit sanction from Axis Bank without mentioning if this credit has been used.

The airline has stated that its insolvency petition does not call for the sale of the company, and the promoter Wadia group is not considering leaving the carrier. Thousands of jobs are also in jeopardy, in addition to worries about the health of the institutions.

We are making every effort to handle the matter with the greatest care and consideration for every employee, Khona told Reuters.

According to PTI, Khona today briefed staff that the airline’s fleet was so small that Go First was unable to produce enough money to pay its lessors due to ongoing Pratt & Whitney engine issues. Lessors are using force, according to Khona as well.

For feedback and suggestions, write to us at editorial@iifl.com

explored-media

Related Tags

  • Aviation
  • bankruptcy
  • go first
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.