Insolvent low-cost carrier Go First (GOW, Mumbai International) faces liquidation following a decision by Jindal Power Ltd not to bid for the airline. The Indian energy company had participated in the expression of interest (EOI) process in September but, according to Reuters and local news outlets, will not proceed with plans to buy the airline.
"The expression of interest process was largely to check the airline's valuation and get access to the company's data," a source close to the talks told the news agency. "After evaluation, the company has decided not to put in a bid."
Prospective buyers had until November 21 to submit their bids. Go First ceased flying in May, soon after filing to enter India's Corporate Insolvency Resolution Process. Creditors, which include banks, lessors, employees, and other suppliers, have since submitted claims for INR65.21 billion rupees (USD782 million). The biggest creditors, the banks, supported selling Go First to Jindal because it was the best hope for recouping some or all of what they are owed.
Several entities had participated in the EOI process run by Go First's resolution professional and overseen by the committee of creditors. However, Jindal's was the only one the committee deemed suitable. Should the committee decide to liquidate the airline, the entity's key remaining asset is a 94-acre parcel of land in Thane that Wadia Group (Go First's owners) had given as collateral to the banks. The land is valued at approximately INR30 billion (USD360 million). Go First's aircraft were all obtained on leases.
On November 23, the National Company Law Tribunal allowed an appeal from Go First’s resolution professional to extend the bankruptcy resolution timeline by 90 days until February 4, 2024, The Economic Times reported.
