(Bloomberg) -- Cerberus Capital Management and SC Lowy are among funds examining a request from India's insolvent Go Airlines for a loan of up to 4.5 billion rupees ($54.9 million), according to people familiar with the matter.
The tenor of the loan may be less than a year and it would be used to run the airline during its bankruptcy proceedings, the people said, asking not to be identified because the matter is private.
Talks with existing lenders are still continuing, they said.
Cerberus and SC Lowy didn't immediately respond to email queries from Bloomberg seeking more information. A spokesperson for Go Airlines and Shailendra Ajmera, who is acting as resolution professional for the carrier, also didn't immediately reply to requests.
Go Air, which voluntarily filed for insolvency in May, is seeking initial bids from prospective investors willing to revive the grounded carrier.
Inviting investor interest is a procedural step under India's bankruptcy law. The resolution administrator, along with creditors, typically assess rescue proposals and then transfer the insolvent company to the successful bidder.
--With assistance from Megawati Wijaya and Ragini Saxena.
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