Go First lenders see 30% recovery from collateral land parcel

LENDERS OF GO First are expecting to recover around 25-30% or ₹1,600-1,900 crore of their exposure to the beleaguered airline, a senior banker told FE.

- SACHIN KUMAR

This will come primarily from the parcel of land in Thane that the Wadia group has given as collateral to the banks.

The grounded airline, which stopped flying operations from May 3 and is undergoing an insolvency resolution process under the Insolvency and Bankruptcy Code (IBC), owes ₹6,521 crore to the lenders, including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank.

The recovery of 25-30% is a little less than what the financial creditors have realised from the IBC process in FY23 at 36%. In the last couple of years, the recovery has improved from a dismal 17% in FY 21 and 23% in FY 22.