Lenders considering forensic audit of Go First to check on funds

They want to be sure which entities used the loans granted by them to the airline: Sources

Lenders are likely to order a forensic audit of Go First airline, which has been under insolvency resolution process since the last month, to check if there has been any diversion of funds, said sources privy to the development on Monday.

Go First’s insolvency application said it owes financial creditors—Deutsche Bank, Bank of Baroda, Central Bank of India and IDBI Bank among them—Rs 6521 crore ($798 million) as on April 28.

Go First declared insolvency due to a cash crunch on May 2 and its application was admitted by the National Company Law Tribunal on May 10. The tribunal had