Lenders of Go First, which is undergoing a voluntary insolvency resolution process, have set up the Committee of Creditors (CoC) and a new resolution professional is likely to be appointed early next week, a source said on Friday.

Cash-strapped Go First stopped flying on May 3 and now, with the CoC in place, the process for revival of the grounded airline is likely to gain speed.

The source said the deadline for constituting the CoC was June 9.

“The representatives from all four banks — Bank of Baroda, Central Bank of India, IDBI and Deutsche Bank — visited the Go First office on Friday and after a meeting, they set up the CoC.

“They discussed various aspects with Go First executives and the ways to proceed further,” the source said.

According to the source, the new resolution professional is expected to be appointed on June 12, and the lenders have suggested one name each from KPMG and EY.

“The CoC is now expected to take up the revival plan for Go First and once it is cleared, the same will be submitted to the Directorate General of Civil Aviation (DGCA),” the source said.

Earlier this month, the airline submitted a revival plan to the DGCA under which it has proposed to resume operations with a fleet of 26 aircraft — 22 for active operations and 4 in reserve — and 152 daily flights.

“We are hopeful of getting the DGCA approval as well after the CoC gives its go-ahead for the revival plan,” the source said.

The CoC is a key part of the insolvency resolution process.

Further, the source said the airline will require around Rs 400 crore of capital infusion.

Go First’s plea for voluntary insolvency resolution proceedings was admitted by the National Company Law Tribunal (NCLT) on May 10.

Go First had submitted to the NCLT that from 2022 onwards, it started defaulting toward payments to vendors and aircraft lessors, and received notices from the lessors seeking payment. It has been facing financial distress due to inherently defective engines supplied by Pratt & Whitney.