Will SpiceJet’s CMD get bankrupt airline Go First : Recently, two bids were received for the revival of India’s bankrupt airline Go First. But, this bid was not as per the expectations of the lenders i.e. the banks giving loans to Go First. Now, following the request of lenders, one of the two bidders has increased his bid amount. This information has been given by news agency Reuters quoting sources.
How much did the bidder increase the bid amount?
Ajay Singh, Chairman and Managing Director of SpiceJet, which provides low-cost flight services, has jointly bid for Go First with Busy Bee Airways. They had earlier submitted a bid of about Rs 16 billion for Go First. But, after the request of the banks, both the companies have increased their bids to between Rs 1 and 1.5 billion. Busy Bee’s majority shareholder Nishant Pitti is the CEO of online travel platform EaseMyTrip.
When did GoFirst go bankrupt?
Go First had filed for bankruptcy in May last year. Two financial bids have been received as part of its insolvency process. The second bidder was Sharjah-based Sky One Airways.
But, both the bids were far below the expectations of the Committee of Creditors. This also included huge cuts. This is the reason why the banks asked both the bidders to increase their bids.
Go First said in its bankruptcy filing that the list of its creditors includes Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank. All of them owe Go First more than Rs 65 billion.
The lenders are in talks with Sky One through the bank resolution professional to also increase its bid. However, no response has come from his side yet.
Creditors meeting will be held next week
A meeting of creditors is scheduled to take place early next week. If there is no positive response from Sky One to increase the bid, the creditors will discuss the joint bid of SpiceJet and Busy Bee. Creditor banks can inform bidders about their decision by the end of this month.
