SpiceJet, as well as two other Organizations, Africa-focused Safrik Investments and Sharjah-based aviation corporation Sky One, have reportedly indicated interest in acquiring troubled carrier Go First. Their interest comes weeks after the proposal deadline passed and lenders began evaluating Go First's liquidation.
According to The Economic Times, Shailendra Ajmera, the resolution professional (RP) in charge of Go First's corporate insolvency resolution process (CIRP), has received requests to do due diligence from these three Organizations in the last 10 days. According to the article, all three firms have asked for a deadline extension.
Lenders have been mulling liquidation after failing to obtain any bids by the deadline of November 22. According to previous reports, lenders feared they were unable to locate buyers due to Go First's legal and operational concerns. After November 22, their options were to extend the deadline or to go bankrupt. Jindal Steel and Power promoter Naveen Jindal's expression of interest (EOI), the only preliminary inquiry to make it as a bidder, did not result in a final bid because he did not bid or request a timetable extension.
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Meanwhile, the National Company Law Tribunal (NCLT) has prolonged the cash-strapped airline's corporate insolvency resolution process by 90 days until February 4, 2024, after the six-month moratorium period expired on November 6. The NCLT has ordered the troubled airline to produce an action plan within the time frame specified. The tribunal stated that if the airline does not finish the settlement process within 90 days, the corporation will be liquidated.
Go First is suing Pratt & Whitney (P&W) for more than $1 billion in arbitration in Singapore, blaming it for supplying faulty engines that were not replaced on time. According to Go First, this caused them to ground half of their fleet, forcing them into bankruptcy.