SpiceJet, 2 other entities show interest in bankrupt Go First

Three companies, including budget carrier SpiceJet, Africa-focused Safrik Investments and Sharjah-based aviation company Sky One, have reportedly expressed interest in acquiring beleaguered carrier Go First.

SpiceJet on Tuesday it intended to "create an airline in collaboration" with the bankrupt carrier and will submit its resolution proposal after due diligence.

SpiceJet had, last week, announced plans to raise Rs2,250 crore by selling shares and warrants to support growth and route expansion.

However, the request from the entities comes weeks after the expiry of the deadline for making proposals and Go First’s lenders put in motion the corporate insolvency resolution process.

Reports said the three parties have sought an extension of the deadline and sent their requests for due diligence to Shailendra Ajmera, the resolution professional managing Go First’s corporate insolvency resolution process, in the past 10 days.

The report added that the committee of creditors will now meet to decide if an extension can be granted.

It is nearly a month since the 22 November deadline for submitting bids expired and lenders will have to meet again to consider the request.

The lenders can proceed with the liquidation process or extend the deadline for submitting bids.

So far, only Naveen Jindal, the promoter of Jindal Steel and Power, has sent an expression of interest (EOI). But, the preliminary inquiry did not translate into a final bid.

The National Company Law Tribunal (NCLT) has extended the six-month moratorium for starting the corporate insolvency resolution process of the cash-strapped airline by 90 days till 4 February 2024. The earlier moratorium had ended on 6 November.

Go First is seeking more than $1 billion from Pratt & Whitney (P&W) in the arbitration proceedings in Singapore, for not replacing its faulty engines on time, which had led to Go First grounding half of its fleet.

Go First owes ac total of Rs6,521 crore to its creditors that include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.