Go First’s lenders approve $55 million fund infusion to revive bankrupt Indian carrier

Lenders to India’s Go First, which is under bankruptcy protection, have approved interim funding of $54.9 million to resume operations and restart the airline

Lenders to India's Go First, which is under bankruptcy protection, have approved interim funding of $54.9 million to resume operations and restart the airline, two banking sources said.

Go First was granted bankruptcy protection on May 10. Reuters reported last week that the airline has sought 4 billion-6 billion rupees in additional funds from banks.

"This interim funding does not come with collateral, it will be a part of the insolvency cost and will be given priority over other dues," said one of the bankers.

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The promoters, however, have indicated that they do not intend to infuse more funds into the airline, the second banker said.

Both bankers did not wish to be named because they were not authorised to speak to the media.

The Go First bankruptcy filing lists the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors, to which the airline owes a total of 65.21 billion rupees.