+
SpiceJet promoter and others submit bids for bankrupt Go First airlines
AVIATION & AIRPORTS

SpiceJet promoter and others submit bids for bankrupt Go First airlines

Ajay Singh, the promoter of SpiceJet, along with Sharjah-based aviation company Sky One and the relatively unknown entity Busy Bee, have successfully submitted the required Rs 50 million bank guarantee and a formal expression of interest (EoI) for the financially troubled Go First Airlines, as per sources familiar with the proceedings.

These entities will now undergo a period of due diligence on Go First Airlines. Additionally, there are indications that the lenders may propose an extension of the resolution process by an additional two months, extending beyond the current deadline of February 4, according to the same sources.

"In his individual capacity, Singh has applied, while Busy Bee, a newcomer, has applied in collaboration with individuals associated with the previous applicant, Plan IT. All of them have met the criteria by submitting the necessary bank guarantee," stated one of the informed sources.

Plan IT had initially applied during the October bidding process but failed to meet the Rs 5 billion net worth criterion. This time, individuals associated with Plan IT have partnered with Busy Bee, successfully making the cut.

Meanwhile, Safrik Investments, focused on Africa, and NS Aviation, based in the United States, have not submitted guarantees despite expressing interest last month. The three entities that have submitted the necessary documentation will now have access to more information and data on Go First to formulate a formal plan, according to another source familiar with the process.

It is anticipated that the resolution professional (RP), Shailendra Ajmera, may call for a fresh voting by creditors as early as Thursday, potentially extending the resolution timeline by an additional 60 days, pushing the corporate insolvency resolution process (CIRP) to 330 days beyond the current February 4 deadline. Ajmera did not respond to an email seeking comment.

Go First Airlines currently owes creditors an amount exceeding Rs 62 billion. Secured creditors include Central Bank of India, Bank of Baroda, and IDBI, with admitted claims of Rs 19.34 billion, Rs 17.44 billion, and Rs 750 million, respectively.

Lenders are optimistic for more substantial bids in this round after the disappointment of the initial bidding process in October. During that round, Naveen Jindal, the promoter of Jindal Steel and Power, was the sole preliminary inquiry that progressed to a bidder for the airline, but it did not materialise into a final bid.

Simultaneously, lenders are pursuing arbitration proceedings in Singapore against engine maker Pratt & Whitney (P&W). This follows the process initiated by Go First's previous management, seeking over $1 billion from P&W, alleging the supply of faulty engines that were not replaced on time, resulting in the grounding of half the airline's fleet and contributing to its financial distress.

Ajay Singh, the promoter of SpiceJet, along with Sharjah-based aviation company Sky One and the relatively unknown entity Busy Bee, have successfully submitted the required Rs 50 million bank guarantee and a formal expression of interest (EoI) for the financially troubled Go First Airlines, as per sources familiar with the proceedings. These entities will now undergo a period of due diligence on Go First Airlines. Additionally, there are indications that the lenders may propose an extension of the resolution process by an additional two months, extending beyond the current deadline of February 4, according to the same sources. In his individual capacity, Singh has applied, while Busy Bee, a newcomer, has applied in collaboration with individuals associated with the previous applicant, Plan IT. All of them have met the criteria by submitting the necessary bank guarantee, stated one of the informed sources. Plan IT had initially applied during the October bidding process but failed to meet the Rs 5 billion net worth criterion. This time, individuals associated with Plan IT have partnered with Busy Bee, successfully making the cut. Meanwhile, Safrik Investments, focused on Africa, and NS Aviation, based in the United States, have not submitted guarantees despite expressing interest last month. The three entities that have submitted the necessary documentation will now have access to more information and data on Go First to formulate a formal plan, according to another source familiar with the process. It is anticipated that the resolution professional (RP), Shailendra Ajmera, may call for a fresh voting by creditors as early as Thursday, potentially extending the resolution timeline by an additional 60 days, pushing the corporate insolvency resolution process (CIRP) to 330 days beyond the current February 4 deadline. Ajmera did not respond to an email seeking comment. Go First Airlines currently owes creditors an amount exceeding Rs 62 billion. Secured creditors include Central Bank of India, Bank of Baroda, and IDBI, with admitted claims of Rs 19.34 billion, Rs 17.44 billion, and Rs 750 million, respectively. Lenders are optimistic for more substantial bids in this round after the disappointment of the initial bidding process in October. During that round, Naveen Jindal, the promoter of Jindal Steel and Power, was the sole preliminary inquiry that progressed to a bidder for the airline, but it did not materialise into a final bid. Simultaneously, lenders are pursuing arbitration proceedings in Singapore against engine maker Pratt & Whitney (P&W). This follows the process initiated by Go First's previous management, seeking over $1 billion from P&W, alleging the supply of faulty engines that were not replaced on time, resulting in the grounding of half the airline's fleet and contributing to its financial distress.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Syrma SGS Elemaster Opens High-Reliability Electronics Facility

Syrma SGS Technology and Elemaster Group have inaugurated a new high-reliability electronics manufacturing facility in Bengaluru through their joint venture, Syrma SGS Elemaster Private Limited.The facility aims to strengthen India’s advanced electronics manufacturing capabilities and support customers across domestic and global markets, particularly in sectors requiring high quality, reliability and stringent manufacturing standards.Located in the Bommasandra Industrial Area, the 20,000 sq. ft. facility is equipped with advanced Surface Mount Technology (SMT), Through-Hole Technology (THT) ..

Next Story
Real Estate

UrbanVault Expands Chennai Workspace Portfolio with 100,000 Sq. Ft.

UrbanVault has expanded into Chennai with approximately 100,000 sq. ft. of managed workspace across three properties, strengthening its presence in India’s flexible workspace market.The company’s Chennai portfolio includes Olympia Teknos and UV IPL in Guindy, and Ceebros Chambers on Velachery Main Road. The expansion marks UrbanVault’s entry into its seventh city, taking its national footprint to more than 3 million sq. ft. across 80+ centres.UrbanVault expects its annual revenue to cross Rs 350 crore in FY27, supported by expansion across major business hubs and rising demand for manage..

Next Story
Real Estate

LML Realty Launches Digital Platform for Custom Factories

LML Realty has launched ‘Your Factory’, a digital platform that enables businesses to configure, customise and order built-to-suit factories online. The platform combines plot selection, factory specifications, pricing and development into a single digital interface.Businesses can select plot sizes ranging from 500 sq. yd. to 10 acres and customise requirements such as factory size, height, structure, crane provisions and power needs. The platform provides instant quotations, allowing users to view configurations and pricing while designing their facilities.Pricing for the built-to-suit fa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code