Wadia Group steers clear of bidding for grounded Go First
The Wadia Group, previous owners of Go First, seems to have no plans to bid for the grounded Indian airline, steering clear of the insolvency process so far. Go First filed for bankruptcy in May, blaming "faulty" Pratt & Whitney engines for grounding nearly half its fleet. As of now, only Jindal Power and Jettwings Airways have submitted expressions of interest (EoIs) in the struggling carrier.
Limited choices for creditors as Wadia Group remains silent
With the Wadia Group staying out of the bidding process, creditors seeking qualified investors have fewer options. Go First's bankruptcy filing includes the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank among its creditors, with a total debt of Rs. 6,521 crore. Although initially eager to revive the airline, the Wadia Group has reportedly "completely gone silent now," as "a lot of things have changed on the ground."
Foreign aircraft lessors locked in legal tussle with Go First
Foreign aircraft lessors of Go First are currently tangled in a legal battle with the company after being prevented from repossessing planes due to a court-imposed moratorium. The Indian government recently amended its insolvency law to exclude leased aircraft from assets that can be frozen. However, it's still unclear whether this amended law will apply retroactively to Go First's case.
Uncertainty looms over Go First's future
With no signs that the Wadia Group will enter the insolvency process later on and only two entities expressing interest so far, the future of Go First Airlines remains uncertain. The outcome of the legal fight between foreign aircraft lessors and the company will also play a crucial role in determining the airline's fate.
