New Delhi: Low-cost airline Go First’s insolvency proceedings have plunged shares of Central Bank of India, Bank of Baroda, and IDBI Bank, with their combined market capitalisation declining by over Rs 7,500 crores. According to ratings agency Acuite, all three banks have a cumulative exposure of Rs 3,051 crore to Go First, reported Business Insider.
Further, Go First had cancelled flights scheduled on May 3 and May 4 after it filed an application for voluntary insolvency. The company blamed faulty engines from US aircraft manufacturer Pratt & Whitney that led to the grounding of half of its fleet. However, the manufacturer said that the Go First has a "lengthy history of missing its financial obligations."
As per Go First's filing with NCLT on April 28, the airline has financial liabilities worth Rs 6,521 crores.
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