In a recent development, the lenders of financially troubled airline Go First have extended the deadline for financial bids to acquire the airline until January 31, according to a source familiar with the situation.
Notable entities expressing interest in acquiring Go First include Sky One, an aviation company based in Sharjah, US-based NS Aviation, and SpiceJet. Sky One acknowledged its interest but refrained from providing detailed comments at this early stage.
These potential buyers have sought permission from Shailendra Ajmera, the Resolution Professional overseeing Go First's Corporate Insolvency Resolution Process (CIRP), to conduct due diligence on the grounded airline.
SpiceJet, in a filing with the BSE stock exchange in December, expressed its interest in submitting an offer post due diligence with the aim of creating a strong and viable airline through a potential combination with SpiceJet. The SpiceJet board had also approved the initiation of a process to raise fresh capital of about $270 million to bolster its financial position and support growth plans.
The Go First Creditors' Committee has opted to extend the Expression of Interest (EOI) submission deadline until January 19. Prospective bidders are expected to submit their bids by January 31, considering the statutory 270-day limit for the CIRP under bankruptcy law, which concludes on February 4 for Go First but may be extended if necessary. The extension allows for a more thorough evaluation and competitive bidding process for the acquisition of Go First.
(With Agency Inputs)
