In the last 10 days, the resolution professional (RP) overseeing Go First's corporate insolvency resolution process (CIRP), Shailendra Ajmera, has received requests from these three entities to perform due diligence.
SpiceJet, a domestic budget airline, along with two other entities, namely Safrik Investments focusing on Africa and Sky One, an aviation company based in Sharjah, have reportedly shown interest in acquiring the struggling carrier Go First. This interest surfaces after the proposal deadline passed, and lenders began considering the possibility of Go First's liquidation.
As per The Economic Times report, Shailendra Ajmera, the resolution professional managing Go First's corporate insolvency resolution process (CIRP), has received requests for due diligence from these entities within the last 10 days. The report indicates that all three entities have requested an extension of the deadline.
The committee of creditors will convene to decide on the possibility of granting an extension, as mentioned in the report.
Facing a lack of bids by the deadline of November 22, lenders have been considering liquidation for Go First. According to earlier reports, the failure to attract buyers was attributed to the airline's legal and operational issues. After November 22, the available options were either extending the deadline or proceeding with liquidation.
Despite Jindal Steel and Power promoter Naveen Jindal expressing interest (EOI) in a preliminary inquiry, this interest did not materialize into a final bid. Naveen Jindal neither submitted a bid nor requested an extension of the timeline.
Meanwhile, following the conclusion of the six-month moratorium period on November 6, the National Company Law Tribunal (NCLT) has extended the corporate insolvency resolution process of the financially troubled airline by 90 days until February 4, 2024. The NCLT has directed the airline to submit an action plan within this specified timeframe. The tribunal has stated that if Go First fails to complete the resolution process within this 90-day period, it would initiate the liquidation process for the company.
Go First is currently engaged in arbitration proceedings in Singapore, seeking over $1 billion from Pratt & Whitney (P&W). The airline alleges that faulty engines supplied by P&W, which were not replaced in a timely manner, forced them to ground half of their fleet, ultimately contributing to their financial distress and bankruptcy.
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