Bank exposure to Go First

Go First’s Insolvency and Bankruptcy petition was filed under Section 10, instead of Sections 7 and 9. While Section 10 allows a debtor to initiate insolvency proceedings against itself, Sections 7 and 9 allow creditors to take the debtor to the National Company Law Tribunal to recover dues.

Go First owes lenders including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank Rs 6,521 crore, according to the airline’s filing.

Central Bank of India had the highest exposure of Rs 1,987 crore, followed by Bank of Baroda at Rs 1,430 crore, Deutsche Bank at Rs 1,320 crore and IDBI Bank at Rs 58 crore, Acuite Ratings and Research said in a January 19 report.