Comments
A day after Go First drew a blank with no final plan from Jindal Power, lenders seemed inclined to push the company towards liquidation, according to sources.
On Wednesday, the committee of creditors (CoC) to Go First were given a day to decide whether they want to restart the Expression of Interest (EoI) process again or liquidate the Wadia Group-owned airline’s assets.
Sources said that during the CoC that lasted for three hours, Shailendra Ajmera, the Resolution Professional (RP) of the company informed the lenders that Jindal Power, which has expressed interest in bidding for the company had not submitted a final plan and bid. Not only that, Jindal Power had not sought an extension. “It seems the company was unable to decide the valuation of the aircraft, hence, they decided to not bid for the company.” Ajmera did not offer a comment.
Also read: Travel to India picks up as tourists shun West Asia
“In fact, the Wadias, who had earlier said that they would back the company, too, haven’t written to the RP stating that they would infuse funds if needed,” said one of the lenders businessline contacted.
Liquidation option
As it has been seen in cases like Jet Airways, there were multiple rounds of finding a potential buyer for the company. However, during the meeting, the lenders said that they were not keen on restarting the process. “We are wasting monies, and we are not interested in that. We are entirely backed, so liquidation seems like a good option for us,” the person said requesting anonymity.
Also read: Will Indian aviation market turn profitable as it heads towards duopoly
However, the person also said that while this was a verbal consensus, the lenders were given time till November 23. The lenders will have to evaluate the valuation of the land parcel, which has been pledged by the Wadias. It will also have to evaluate the remaining money from the ECGLS scheme, the extent of haircut that the lenders will have to take. “Though we are confident that the haircut won’t be as much as it was during Jet Airways’ case, as we have a tangible security.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.