Thursday, August 24, 2023

Go First lenders approve Rs 100 crore of CIRP cost with 98% vote

The lenders of Go First airline have approved the corporate insolvency resolution process (CIRP) cost of Rs 100 crore with a 98 per cent vote.

A lender said that the CIRP costs were approved by the Central Bank and the Bank of Baroda, according to a report in the Businessline.

The IDBI Bank abstained from voting, thereby leaving 98 per cent vote in favour of the costs.

According to the rules, over 66 per cent of the lenders are required to vote in favour of the same. The Central Bank, which is the largest lender to the airline, has 51.5 per cent voting rights, the Bank of Baroda has 46.5 per cent voting rights, and the IDBI has 1.98 per cent voting rights.

Sources said that during a meeting held on Wednesday, lenders to the Wadia-owned airline have approved the costs, including parking and airport costs, employee salaries, insurance premiums, aircraft maintenance and repair, tax deducted at source (TDS), and provident fund, among others.

Earlier this month, Shailendra Ajmera, the airline's resolution professional (RP), had requested the CIRP costs to the tune of Rs 100 crore. The costs included Rs 37 crore on salaries for Go First, TDS and provident fund of Rs 20.50 crore on the employee front, and Go First ground support employee health insurance of Rs 1.75 crore.

24/08/2023 Business Standard

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