Indian airline Go First has attracted two financial bids in the course of its bankruptcy proceedings, as revealed by sources present at the creditors’ meeting on Saturday. Spicejet’s Managing Director, Ajay Singh, partnered with Busy Bee Airways, jointly submitting a bid amounting to ₹16 billion ($193.10 million) for the airline’s acquisition. Meanwhile, Sharjah-based Sky One Airways submitted another financial bid, with the specific amount undisclosed.
The bids not only encompass the acquisition but also outline additional funds for reviving Go First’s operations, according to information shared by a banker from a state-run bank with exposure to Go First.
Nishant Pitti, the majority shareholder of Busy Bee Airways, emphasized the confidentiality of their bid, stating that it is safeguarded by the Committee of Creditors until the announcement of a successful bidder. “Our bid for launching the airline remains confidential, guarded by the Committee of Creditors (CoC) until a successful bidder is announced,” stated Nishant Pitti.
Go First initiated bankruptcy proceedings in May of the previous year, listing creditors such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to which the airline owes a total of ₹65.21 billion. The promoters had earlier indicated their reluctance to inject further funds into the airline. Additionally, Go First faced disputes with lessors seeking to repossess planes due to missed payments. The lessors petitioned the Directorate General of Civil Aviation for permission to reclaim the aircraft.
Following the bankruptcy filing, the airline witnessed a change in leadership as the then CEO, Kaushik Khona, resigned. Khona had joined Go First as CEO in August 2020. In an internal communication to employees during his departure, Khona expressed regret over circumstances beyond his control and sought pardon for any hurt feelings during his tenure.
As the bankruptcy proceedings unfold, the financial bids present a crucial juncture for Go First’s future, and the decision by the Committee of Creditors will significantly impact the airline’s trajectory and potential revival.
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