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26-02-2024
NEW DELHI/ MUMBAI: India’s Go First has received two financial bids as part of its bankruptcy process, said two bankers who attended a meeting of the airline’s creditors held on Friday.
Budget carrier SpiceJet’s (SPJT.BO), opens new tab managing director, Ajay Singh, and Busy Bee Airways have jointly submitted a bid of 16 billion rupees ($193.10 million) for the airline, the bankers said.
“The plan includes additional fund infusion to restart the airline’s operations,” said a banker with a state-run bank that has exposure to Go First.
The bankers did not wish to be identified as they are not authorized to speak to the media. Go First’s resolution professional, who conducts the bankruptcy process, Singh and Spicejet did not respond to emails seeking comment.
“Our bid for launching the airline remains confidential, guarded by the Committee of Creditors (CoC) until a successful bidder is announced,” Nishant Pitti, majority shareholder of Busy Bee Airways, said.
The airline has also received a financial bid from Sharjah-based Sky One Airways which is lower than the competing bid, one of the bankers said, without disclosing the amount.
Sky One Airways did not immediately respond to a request for comment.
Due diligence on the bids is expected to be completed next month, the second banker, also with a state-run bank, said.
Go First filed for bankruptcy in May last year. Its bankruptcy filing lists Central Bank of India (CBI.NS), opens new tab, Bank of Baroda (BOB.NS), opens new tab, IDBI Bank (IDBI.NS), opens new tab and Deutsche Bank (DBKGn.DE), opens new tab among creditors to which the carrier owes a total of 65.21 billion rupees.
Go First’s lessors also engaged in a dispute with the airline and the Directorate General of Civil Aviation to repossess planes due to missed payments. They petitioned the aviation watchdog for permission to reclaim the aircraft.
The then Chief Executive Officer of the airline Kaushik Khona also resigned following bankruptcy filing. Khona joined Go First as CEO in August 2020. In an internal communication to employees last year the then CEO of Go First said, “With heavy heart I have to inform you that today is my last day with the company. I got an opportunity to work for Go FIRST once again in August 2020 and with your able and active support I tried to perform to my best abilities… “I regret that I could not get things done as they were beyond my control and I seek pardon for any of your feelings that I may have hurt during my tenure and hope you will pardon me…”
