Go First Airlines Bankruptcy
AVIATION & AIRPORTS

Go First Airlines Bankruptcy

The resolution professional (RP) managing the bankruptcy proceedings of Go First Airlines has extended the deadline for lenders to cast their votes regarding the consideration of new bids from SpiceJet and two other investors. This extension comes in response to certain creditors seeking more time to evaluate the recent expressions of interest, according to sources familiar with the process.

Initially set to conclude last Saturday, the voting period has been prolonged until the end of this week.

RP Shailendra Ajmera initiated the voting process subsequent to receiving unsolicited interest from three entities last month, all vying to conduct due diligence on the grounded airline.

Among these entities, Sharjah-based aviation company Sky One, Africa-focused Safrik Investments, and domestic budget airline SpiceJet expressed interest in acquiring Go First following the lapse of the proposal deadline.

The airline's outstanding debts exceed ?6,200 crore. Leading creditors include Central Bank of India, Bank of Baroda, and IDBI, with admitted claims of ?1,934 crore, ?1,744 crore, and ?75 crore, respectively. Collectively, these lenders are owed ?3,753 crore by the airline, and any deadline extension necessitates their approval.

The RP retains the authority to extend the corporate insolvency resolution process (CIRP) for an additional 60 days, still within the Insolvency and Bankruptcy Code's outer limit of 330 days, which concludes on February 4.

Naveen Jindal's expression of interest considered a potential bidder for the airline, did not materialize into a final bid in the recent round.

Lenders remain cautious due to the limited information available about the foreign entities and the financial stability of SpiceJet, which is grappling with its own set of challenges.

In parallel, they anticipate a more favorable recovery outcome from Go First's ongoing arbitration proceedings in Singapore against US engine manufacturer Pratt & Whitney (P&W), as opposed to a direct sale. The arbitration, initiated by Go First's previous management, seeks over $1 billion from P&W, attributing faulty engines and delayed replacements for grounding half of the airline's fleet, ultimately leading to bankruptcy.

The resolution professional (RP) managing the bankruptcy proceedings of Go First Airlines has extended the deadline for lenders to cast their votes regarding the consideration of new bids from SpiceJet and two other investors. This extension comes in response to certain creditors seeking more time to evaluate the recent expressions of interest, according to sources familiar with the process. Initially set to conclude last Saturday, the voting period has been prolonged until the end of this week. RP Shailendra Ajmera initiated the voting process subsequent to receiving unsolicited interest from three entities last month, all vying to conduct due diligence on the grounded airline. Among these entities, Sharjah-based aviation company Sky One, Africa-focused Safrik Investments, and domestic budget airline SpiceJet expressed interest in acquiring Go First following the lapse of the proposal deadline. The airline's outstanding debts exceed ?6,200 crore. Leading creditors include Central Bank of India, Bank of Baroda, and IDBI, with admitted claims of ?1,934 crore, ?1,744 crore, and ?75 crore, respectively. Collectively, these lenders are owed ?3,753 crore by the airline, and any deadline extension necessitates their approval. The RP retains the authority to extend the corporate insolvency resolution process (CIRP) for an additional 60 days, still within the Insolvency and Bankruptcy Code's outer limit of 330 days, which concludes on February 4. Naveen Jindal's expression of interest considered a potential bidder for the airline, did not materialize into a final bid in the recent round. Lenders remain cautious due to the limited information available about the foreign entities and the financial stability of SpiceJet, which is grappling with its own set of challenges. In parallel, they anticipate a more favorable recovery outcome from Go First's ongoing arbitration proceedings in Singapore against US engine manufacturer Pratt & Whitney (P&W), as opposed to a direct sale. The arbitration, initiated by Go First's previous management, seeks over $1 billion from P&W, attributing faulty engines and delayed replacements for grounding half of the airline's fleet, ultimately leading to bankruptcy.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code