Bankrupt Indian airline Go First gets two financial bids

Budget carrier SpiceJet's managing director, Ajay Singh, and Busy Bee Airways have jointly submitted a bid of 16 billion rupees ($193.10 million) for the airline

Reuters
Published : 25 Feb 2024, 01:39 AM
Updated : 25 Feb 2024, 01:39 AM

India's Go First has received two financial bids as part of its bankruptcy process, said two bankers who attended a meeting of the airline's creditors held on Friday.

Budget carrier SpiceJet's managing director, Ajay Singh, and Busy Bee Airways have jointly submitted a bid of 16 billion rupees ($193.10 million) for the airline, the bankers said.

"The plan includes additional fund infusion to restart the airline's operations," said a banker with a state-run bank that has exposure to Go First.

The bankers did not wish to be identified as they are not authorised to speak to the media. Go First's resolution professional, who conducts the bankruptcy process, Singh and Spicejet did not respond to emails seeking comment.

"Our bid for launching the airline remains confidential, guarded by the Committee of Creditors (CoC) until a successful bidder is announced," Nishant Pitti, majority shareholder of Busy Bee Airways, said.

The airline has also received a financial bid from Sharjah-based Sky One Airways which is lower than the competing bid, one of the bankers said, without disclosing the amount.

Sky One Airways did not immediately respond to a request for comment.

Due diligence on the bids is expected to be completed next month, the second banker, also with a state-run bank, said.

Go First filed for bankruptcy in May last year. Its bankruptcy filing lists Central Bank of India Bank of Baroda, IDBI Bank, and Deutsche Bank, among creditors to which the carrier owes a total of 65.21 billion rupees.