Go First gets two financial bids as part of its bankruptcy process

Indian airline Go First has received two financial bids as part of its bankruptcy process, two bankers who attended a meeting of the airline’s creditors said on Saturday. Managing director of Spicejet Ajay Singh, along with Busy Bee Airways, jointly submitted a bid of 16 billion rupees ($193.10 million) for the airline. Another financial bid was submitted by Sharjah-based Sky One Airways, but its amount wasn’t disclosed.

The plan included additional funds for restarting the airline’s operations, as stated by a banker with a state-run bank that has exposure to Go First.

However, Nishant Pitti, the majority shareholder of Busy Bee Airways, mentioned that their bid remained confidential and was guarded by the Committee of Creditors until a successful bidder was announced. “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.

Go First filed for bankruptcy in May last year. The bankruptcy filing listed creditors such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank to which the carrier owes a total of 65.21 billion rupees. The promoters had earlier indicated that they did not intend to infuse more funds into the airline.

Go First’s lessors also engaged in a dispute with the airline and the Directorate General of Civil Aviation to repossess planes due to missed payments. They petitioned the aviation watchdog for permission to reclaim the aircraft.

The then Chief Executive Officer of the airline Kaushik Khona also resigned following bankruptcy filing. Khona joined Go First as CEO in August 2020. In an internal communication to employees last year the then CEO of Go First said, “With heavy heart I have to inform you that today is my last day with the company. I got an opportunity to work for Go FIRST once again in August 2020 and with your able and active support I tried to perform to my best abilities… “I regret that I could not get things done as they were beyond my control and I seek pardon for any of your feelings that I may have hurt during my tenure and hope you will pardon me…”

(With agencies’ inputs)