Lenders to the insolvent Go First will likely meet Monday to assess an earlier fund-infusion plan into the grounded carrier saddled with about Rs 6,500 crore of overdue payments, with regulatory approval to lessors to repossess leased aircraft making it unviable for bankers to commit fresh money to the first case of voluntary bankruptcy in Indian aviation.
The Directorate General of Civil Aviation (DGCA) told the Dehi High in an affidavit that the recent order exempting aviation leases from bankruptcy moratorium should apply even to companies undergoing insolvency proceedings. That drastically reduces the chances of the airline’s revival, resulting in a potential loss of Rs 6,500 crore to creditors.
