Go First extends bid deadline to Jan 31 amid bankruptcy protection

Go First lenders have agreed to extend the date of submitting Expression of Interest to January 31. The Committee has decided to accommodate only the four candidates that had come forth.

A lender informed businessline that in a recent committee of creditors meeting, bankers agreed to permit the submission of expressions of interest. After the deadline had lapsed, the four parties had emailed Shailendra Ajmera, the Resolution Professional (RP).

“The four parties have been informed to formally submit an EOI in the next few days, and post that, they have to submit the bids by the end of this month. Although, if they request, there may be an extension of the deadline.”

NS Aviation is a new entrant in the list of parties that have expressed interest for the airline. NS Aviation is the company that acquired a stake in TruJet last year.

• Also read: SpiceJet expresses interest in acquiring Go First amid bankruptcy

Besides SpiceJet, Sharjah-headquartered Sky One and Safrik Investments have sent emails to Go First RP expressing interest in acquiring the airline.

Go First filed for bankruptcy protection in May, blaming Pratt and Whitney’s faulty engines.

The RP extended the deadline to invite interests twice, however, drew a blank. Meanwhile, the lenders were contemplating the airline’s liquidation as they failed to get any bids within the earlier deadline.

Another lender clarified that in the upcoming weeks, a data room will be made accessible to potential parties. This will facilitate their examination of the company’s financials, assets, liabilities, and employee strength.

This process will enable the parties to determine the company’s valuation and submit their bids. Following the bid submission, the Resolution Professional (RP) and lenders will consider a resolution plan, covering aspects like the restart of operations, employee count, required aircraft, etc.

The grounded airline currently has 56 aircraft in its fleet.

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