The Committee of Creditors of Go First will decide on the CIRP cost of ₹100 crore next week. Meanwhile, lenders have said that the interim funding of ₹450 crore may not come in till the High Court allows the airline to operate aircraft.
The Resolution Professional (RP) of GoFirst, Shailendra Ajmera, informed the lenders that the airline is incurring costs on a daily basis despite not being operational. He said that the airline has to make payments for the premium of insurance, salaries, and maintenance of the aircraft, among other things. The CoC did not make a decision on this, according to lenders.
“This (CIRP cost funding of ₹100 crore) will be put to voting next week. However, this funding is likely to be approved if the airline is to continue as a going concern. Nonetheless, the interim funding which was sought earlier is only likely to be voted upon only after the HC proceedings are done,” said a lender.
NCLT ruled in favour of GoFirst allowing it to operate the aircraft and the RP to maintain the aircraft while the Delhi HC passed an order stating that Go First cannot operate the aircraft. The RP has challenged the latter order.
On Friday, the National Company Law Appellate Tribunal (NCLAT) on August 18 modified the order of National Company Law Tribunal (NCLT) from July 26, to permit engine lessor Engine Lease Finance BV to carry out inspection of their four engines leased to the Wadia-owned airline.
Meanwhile, Central Bank has asked the RP to approach the Ministry to release the Emergency Credit Line funding. However, sources have said that it may not may possible as the account needs to be operational.
Speaking about the human capital, the RP said that the airline now has 2198 employees on its payroll of which, 1,000 are serving their notice period. The airline now has 103 captains, 26 co-pilots and 374 cabin crews.
In another development, the airline has said that it has discontinued operations till August 21.