Go First Airlines, which operated the Go First airline, declared bankruptcy in May, claiming “faulty” Pratt & Whitney engines for the grounding of approximately half of its 54 Airbus A320neos.
According to two banking sources, Go Airlines (India) Ltd has received claims totaling 240 billion rupees ($2.9 billion) from operational and financial creditors as part of the carrier’s protracted insolvency.
The procedure adheres to Indian law’s procedural standards, which give every creditor a right to payment and redress by submitting claims if a corporation declares bankruptcy. After the claims are filed, the resolution specialist must verify their veracity.
“Claims from lenders are around 50 billion rupees, while lessors’ claims amount to 180 billion rupees so far,” a banker with a state-run bank with exposure to Go Airlines said following a meeting of the creditors’ committee on Friday.
Because they were not authorized to speak to the media, the bankers did not want to be recognized.
Go Airline’s resolution professional has yet to confirm the authenticity of the charges and did not respond promptly to an email from Reuters seeking comment.
Go Airlines, which operated the Go First airline, declared bankruptcy in May, claiming “faulty” Pratt & Whitney engines for the grounding of approximately half of its 54 Airbus A320neos.
The claims have been dismissed by Raytheon-owned engine manufacturer.
Earlier this month, the firm welcomed investment interest in the company through a court-appointed administrator. The deadline for submitting an expression of interest (EoI) is August 9.
“The airline has received 40 queries on EOIs from potential bidders, but no formal submissions have been made as of yet,” added the second banker.
On Friday, India’s aviation authority said Go Airlines might restart operations if certain criteria are met, including interim funding and approval of its flight schedule.
According to the banker, the resolution professional is waiting for banks to distribute cash for which in-principle approval was granted last month in order to commence operations.