The issue of Go First is now adding fuel to the fire. Every moment new things are coming out in this matter. Now the names of those banks have come to the fore which have given loans to GoFirst. The number of such lenders is said to be four to five, whose dues are now more than Rs 6500 crore. The special thing is that the airline has not made any default in the installment of any lender till April, but now after the bankruptcy filing, it seems to be breaking. After this incident, there is also a huge decline in the shares of the lenders.
The names of these banks came to the fore
The names of Bank of Baroda, IDBI Bank and Axis Bank are being seen in the banks giving loan to Go First. The airline has to pay dues of Rs 6,521 crore to these companies. According to the bankruptcy filing filed by GoFirst, banks such as Central Bank of India and Deutsche Bank are also among the financial creditors of GoFirst. However, the crisis-hit airline has not defaulted on any of these dues till the end of April. However, now considering the current financial condition of the corporate applicant, the installments may stop in the coming months.
Heavy fall in lenders’ shares
After the news of sinking of Go First, there is a huge fall in the shares of lenders today i.e. on Wednesday. Shares of Central Bank of India fell up to 7 per cent in early trade on Wednesday. Shares of Bank of Baroda saw a decline of 4 per cent during the trading session. IDBI Bank’s shares have seen a decline of about 3 percent and Axis Bank’s stock was trading at a decline of more than one percent.
Bankruptcy was applied on Tuesday
Giving information on Tuesday, Wadia Group’s Go First had said that it has applied for insolvency resolution. The airline said that American company Pratt & Whitney did not provide engines on time, due to which they had to keep 50 planes grounded. Because of which the company is completely unable to clear its dues. By the way, last month there was a report that Wadia Group will invest Rs 300 crore in Go First.