Indian banks and other creditors of Go First may take a 'huge hit'

With cash-strapped budget carrier Go First filing for bankruptcy, major lenders including Bank of Baroda, IDBI Bank were trading with deep cuts on Dalal Street as experts said that the recovery may not be exceeding anywhere about 25-30% that the Wadia Group company owes.

Go First, which filed for bankruptcy on Tuesday, owes financial creditors Rs 6,521 crore ($798 million), its bankruptcy filing showed. As of April 30, Go First Air had not defaulted on any of these dues, it said in the filing, which was seen by Reuters.

The filing lists Central Bank of India Ltd, Bank of Baroda Ltd, IDBI Bank Ltd, Axis Bank Ltd and Deutsche Bank among Go First's financial creditors.