Central Bank of India, Bank of Baroda, IDBI Bank: Who are the major lenders to Go First?

Go First, the airlines that voluntarily filed for insolvency proceedings, reportedly owes millions to its financial creditors. Moreover, its lenders were reportedly not aware of the airline’s plans to file for insolvency. They are now likely to meet soon to take stock of the situation.

According to a filing, accessed by Reuters, Central Bank of India, Bank of Baroda, IDBI Bank, Axis Bank and Deutsche Bank were among Go First's financial creditors. The report stated that the airline owes $798 million (over Rs 6,500 crore) to the creditors. 

Central Bank, Bank of Baroda, and IDBI Bank, among others have an exposure of Rs 4,000 crore to the airline, as per a report by The Economic Times. The airline had, moreover, deferred the payment of aircraft leases for around three years when the pandemic struck and the bulk of that payment would also start this year, the financial daily reported. 

The promoters infused funds worth Rs 3,200 crore in the last three years, out of which Rs 2,400 crore was pumped in the last 24 months, and Rs 290 crore in April. "This brings the total investment in the airline since its inception to approximately Rs 6,500 crore," the airline said in a statement.

Meanwhile, Pratt & Whitney said that Go First has a long history of missing payments. “Go First has a lengthy history of missing its financial obligations to Pratt,” said the engine maker to news agency ANI. It also said that it would continue to prioritise its delivery schedule for its customers in compliance with the March 2023 arbitration. 

Go First said on Tuesday that it has been forced to file for insolvency proceedings due to ‘serial failure’ of Pratt & Whitney to supply engines, resulting in the grounding of 50 per cent of its fleet, rendering it difficult to meet its financial obligations. 

Also read: Go First has lengthy history of missing financial obligations, claims engine maker Pratt & Whitney

Also read: Go First's bankruptcy effect: Bank of Baroda, Central Bank, IDBI Bank shares plunge up to 7%; Investors lose Rs 7,100 crore