Under the leadership of Nusli Wadia, the Wadia Group has confidently asserted that the bankruptcy of its budget airline, Go First, in May of the previous year, will not hinder its ability to secure funds for other businesses within the conglomerate in the future. Reports indicate that the credit ratings of all Wadia Group companies remain strong.
Go First, established in 2005, voluntarily filed for bankruptcy in May 2023, citing outstanding debts exceeding Rs 6,521 crore, primarily owed to lenders, including a substantial portion owed to public sector banks.
Although there were speculations suggesting that the Wadia Group might submit a bid for Go First, possibly involving a global fund, the conglomerate ultimately chose not to proceed with such a bid.
In a surprising turn of events in December, Sky One, an aviation company based in Sharjah, and SpiceJet expressed interest in acquiring the financially troubled Go First. This development occurred after the proposal deadline had passed and while lenders were considering the possibility of liquidation.
Both entities 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.
In a recent development, the RP of cash-strapped Go First airline submitted an affidavit in the Delhi High Court stating that 2,278 employees remain on the rolls of the company, with none currently reporting to work. The affidavit noted that various personnel required for maintenance activities have either resigned or are not reporting to work due to non-payment of salaries.
This comes in the wake of a contempt petition filed by the lessor, alleging that Ajmera did not permit them to inspect the aircraft and did not maintain them as per court directions. The situation underscores the ongoing challenges and complexities surrounding the airline's insolvency proceedings.
(With Agency Inputs)
