Sky One and SpiceJet have expressed interest in acquiring the financially distressed airline Go First, a surprising move after the proposal deadline had passed. The development follows weeks of lenders considering liquidation due to the absence of bids by the November 22 deadline. Sky One, based in Sharjah, and SpiceJet sought permission for due diligence on Go First and requested a deadline extension. A decision on the extension is pending, awaiting discussion in the creditors' committee meeting. SpiceJet, in a BSE filing, confirmed its interest in a possible combination with Go First and mentioned its recent board approval for raising fresh capital of about $270 million. The move aims to strengthen SpiceJet's financial position and support growth plans. The acquisition interest comes amid Go First facing challenges, with a significant number of employees not reporting to work due to non-payment of salaries, as stated in an affidavit submitted by the resolution professional overseeing the insolvency process.
Key Points:
1. Sky One, an aviation company based in Sharjah, and SpiceJet have expressed interest in acquiring the financially troubled airline Go First.
2. The development occurred after the proposal deadline had passed, and lenders were considering the possibility of liquidation for Go First.
3. Sky One confirmed its interest in the acquisition but deemed it premature to provide details at this stage.
4. Both entities approached Shailendra Ajmera, the resolution professional overseeing Go First’s corporate insolvency resolution process, seeking permission for due diligence on the grounded airline.
5. The entities also requested a deadline extension, pending discussion in the creditors' committee meeting.
6. With no bids received by the November 22 deadline, lenders are reportedly considering the option of liquidation for Go First.
7. SpiceJet expressed interest in submitting an offer post-diligence to create a strong and viable airline in collaboration with Go First.
8. The Board of SpiceJet has approved raising fresh capital of about $270 million to strengthen its financial position and support growth plans.
9. Shailendra Ajmera submitted an affidavit stating that 2,278 Go First employees remain on the rolls, with none currently reporting to work due to non-payment of salaries.
10. The affidavit followed a contempt petition by a lessor, alleging that Ajmera did not allow them to inspect the aircraft and did not maintain them as per court directions.
(With Agency Inputs)
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