Go Airlines’ plans to raise Rs 3,600 crore via an initial public offer (IPO) have been put on hold by India’s market regulator, dealing another blow to the debt-laden carrier, whose business has been decimated by the Coronavirus pandemic. 

Go Airlines’ share sale documents will be “kept in abeyance,” the SEBI has said in a filing late on Monday, without specifying the reason for it. 

A spokeswoman for Go Airlines said that the company had not received any communication from the SEBI. 

That delay is sure to be damaging to Go Airlines, which was depending on the IPO proceeds to repay debt and dues to creditors, including Indian Oil Corporation. Go Airlines, a no-frills carrier controlled by the Wadia Group, is saddled with obligations that totalled around Rs 8,160 crore as of mid-April, according to its preliminary prospectus. 

Any recovery in air travel in India also looks to be postponed, with fears that record vaccinations may not stop a deadly third wave. Indian carriers will need about $5 billion to survive but only have access to about $1.1 billion through share offers and other means, according to the CAPA Centre for Aviation. IndiGo, India’s biggest carrier, and the nation’s flag carrier, Air India, will account for the bulk of the $8 billion in losses by 2022, CAPA said.