Go First Bankruptcy: Lenders meet to determine future actions

Go First Bankruptcy Lenders meet to determine future actions

Key Points of GO First Bankruptcy News:

  • Go First, a Cash-Strapped Indian Airline, filed for bankruptcy on Tuesday, citing financial difficulties.
  • The airline’s lenders will hold a meeting today to discuss the next steps and evaluate the necessary level of provisions, according to sources.
  • Go First owes its financial creditors a total of 65.21 billion yen, but as of April 30, it had not fallen behind on any payments.
  • Go First has taken out a 12.92 billion emergency credit loan from the Indian government due to the Covid crisis.
  • The airline’s total liabilities to all creditors amount to 114.63 billion yen, including payments to banks, financial institutions, suppliers, and aircraft lessors.
  • Lessors have sent notifications to end their leases on aircraft, and some have even taken steps to halt or reclaim their leased aircraft.
  • The future of Go First is unknown, and any new developments will be keenly watched during the lenders’ conference.

Details of GO First Bankruptcy News:

Go First, a cash-strapped Indian airline, filed for bankruptcy on Tuesday, indicating its financial difficulties. Today’s meeting will be held by the airline’s lenders to discuss the next steps. They will evaluate the level of supplies necessary, according to sources.

According to the airline’s bankruptcy petition, it owes its financial creditors a total of 65.21 billion yen. It acknowledged that as of April 30 it had not fallen behind on any of these obligations. However, given the airline’s present financial situation, missing payments to financial creditors would be inevitable.

In addition to bank loans, Go First has taken out a 12.92 billion emergency credit loan from the Indian government as a result of the Covid problem. The airline owes 114.63 billion in debt to all creditors, which includes payments to banks, financial institutions, suppliers, and aircraft lessors.

According to Go First’s petition, its present assets are not enough to cover its liabilities. The airline owes 12.02 billion to suppliers and 26.60 billion to aircraft lessors, and has already fallen behind on payments to operational creditors.

According to the petition, lessors have sent notifications to end their leases on aircraft, and some have even taken steps to halt or reclaim their leased aircraft. The future of Go First is unknown, therefore any new developments will be keenly watched during the lenders’ conference.

About Go First:

Owned by the Indian business conglomerate Wadia Group, Go First Airlines, previously known as GoAir Airlines, was an ultra-low-cost airline based in Mumbai, Maharashtra. As of October 2017, the airline had an 8.4% passenger market share, ranking it as the fifth largest airline in India.

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