The lenders of Go First have approved an in-principle interim funding of Rs 425 crore for the crisis-hit airline to fly again.

The consortium of banks led by the Central Bank of India will need to take approvals from their respective boards. This is a new source of funding as the unutilised credit lines with banks expired after the company sought voluntary bankruptcy and was admitted to insolvency.

Following the board approvals, the Directorate General of Civil Aviation (DGCA) will have to permit the budget carrier to restart operations.

Earlier this month, the airline’s resolution professional Shailendra Ajmera submitted a revival plan and a request for over Rs 400 crore funding to the committee of creditors (CoC).

Go First’s lenders include Central Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank. They collectively have an exposure of over Rs 6,500 crore to the airline. 

In early May, Go First filed for voluntary bankruptcy. The National Company Law Tribunal (NCLT) admitted the plea.