Go First’s CoC now in place; approval for revival plan likely soon: Report

Go First lenders, which are undergoing a voluntary insolvency settlement process, have set up a creditors’ committee and a new resolution specialist is likely to be appointed early next week, a source said on Friday.

The cash-strapped Go First stopped flying as of May 3 and now, with the code of conduct in place, the process of reviving the defunct airline is likely to pick up speed.

The source said the deadline for the formation of the code of conduct is June 9.

“Representatives of all four banks – Bank of Baroda, RBI, IDBI Bank and Deutsche Bank – visited the Go First office on Friday and after a meeting, they created the Code of Conduct.

“They discussed various aspects with Go First executives and the way forward,” the source familiar with the development told PTI.

According to the source, the appointment of the new resolution professional is expected on June 12, and the lenders have suggested one name for both KPMG and EY.

“It is now expected that the Code of Conduct will take over the Go First revival plan and once approved, the same will be submitted to the Directorate General of Civil Aviation (DGCA),” the source said.

Earlier this month, the airline submitted a revival plan to the Directorate General of Civil Aviation under which it proposed resuming operations with a fleet of 26 aircraft – 22 for active operations and 4 in reserve – and 152 daily flights.

“We hope to obtain the approval of the Directorate General of Civil Aviation as well after the Code of Conduct gives the green light to the revitalization plan,” the source said.

The Code of Conduct is an essential part of the insolvency resolution process.

Further, the source said that the airline will require around Rs 400 crore capital injection.

Go First’s appeal for voluntary bankruptcy settlement proceedings was accepted by the National Company Law Tribunal (NCLT) on May 10.