SpiceJet, two others show interest in acquiring bankrupt Go First
SpiceJet, Sharjah-based Sky One, and Safrik Investments, an Africa-focused firm, have shown interest in acquiring the bankrupt carrier Go First, as per an Economic Times (ET) report. This news comes after the deadline for proposals passed and lenders started considering liquidation. In the past 10 days, Shailendra Ajmera, the resolution professional managing Go First's insolvency process, received requests from these companies to conduct due diligence.
Entities are seeking a deadline extension for submitting bids
The three entities have requested an extension for submitting their bids. Sources told ET, "The committee of creditors will now meet to decide if an extension can be granted." Lenders had been considering liquidation since no bids were received by November 22. They had to choose between extending the deadline or moving toward liquidation. Naveen Jindal's expression of interest did not result in a final bid, as he neither placed a bid nor requested a timeline extension.
NCLT extended Go First's moratorium period until February 4
Meanwhile, the National Company Law Tribunal (NCLT) has extended Go First's insolvency resolution process by 90 days until February 4, 2024. This comes after the six-month moratorium period ended on November 6. The tribunal has asked the struggling airline to submit an action plan within this timeframe. If Go First fails to complete the resolution process within this period, the NCLT will initiate the company's liquidation process.
Lenders concerned about financial capabilities of interested parties
Lenders are concerned about the financial capabilities of the three interested parties. An executive close to the matter said that Go First is seeking over $1 billion from Pratt & Whitney (P&W) in arbitration proceedings in Singapore. The airline blames P&W for supplying faulty engines that were not replaced on time, leading to half of Go First's fleet being grounded and pushing the airline toward bankruptcy. Lenders anticipate a better recovery from the ongoing arbitration than from selling the airline.
