In a relief for the Wadia-owned airline, lenders of Go First have approved the Corporate Insolvency Resolution Process (CIRP) cost of ₹100 crore with a 98 per cent voting.

Speaking to businessline , one of the lenders said that the Central Bank and Bank of Baroda approved the CIRP costs. IDBI abstained from voting thereby leaving 98 per cent vote in favour of the costs.

As per the rules, over 66 per cent of the lenders need to vote in favour of the same. Central Bank, which is the largest lender to the airline, has 51.5 per cent voting rights whereas Bank of Baroda has 46.5 per cent voting rights and IDBI has 1.98 per cent voting rights.

Sources said that vide a meeting held on Wednesday, lenders to the Wadia-owned airline, have approved the costs including parking and airport costs, employee salaries, insurance premium, aircraft maintenance and repair, TDS and provident fund among others. 

CIRP costs

Earlier this month, the resolution professional (RP) of the airline, Shailendra Ajmera had requested for the CIRP costs to the tune of ₹100 crore. The costs included ₹37 crore on salaries for Go First and Go First ground support employee health insurance of ₹1.75 crore and TDS and provident fund of ₹20.50 crore on employee front.

The company also sought ₹8.75 crore on insurance premium of aircraft, airport parking charges of ₹5.3 crore, repair and maintenance costs of ₹3 crore and other airport charges of ₹2.56 crore. It also sought for electricity, rent and ticketing system charges among others.

The airline now has 2,198 employees on its payroll, of which, 1,000 are serving their notice period. The airline now has 103 captains, 26 co-pilots and 374 cabin crews. 

The airline has said that it has discontinued operations till August 24.

In another development, the Delhi High Court will conclude hearing Go First’s lessors on Thursday.

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