Go First is set to face a tough week ahead as lenders of the troubled airline will reportedly be discussing their potential options, such as including liquidation. This comes after a court ruling permitting the lessors to reclaim their planes.
As per sources cited in a report by Reuters, "There is no value left in the airline after the court order and chances of revival seem very grim." Among Go First's creditors are the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. The troubled airline owes a consolidated debt of 65.21 billion rupees ($780.88 million).
Two offers have already been submitted to Go First within the formal bankruptcy process, one from a group featuring SpiceJet's managing director Ajay Singh and another from Sky One based in Sharjah.
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Jaideep Mirchandani, Chairman of Sky One, stated on Friday that despite the aircraft de-registration, their plans for the Indian aviation industry remain unchanged. "If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors," he said.
According to the report, the lenders are considering rejecting the current bids owing to their dissatisfaction with the offered amounts from both applicants. These bids also take into account the value of a piece of land offered as collateral by the airline's promoters.
Sources also highlighted, that if the committee formally rejects the two offers or if the applicants withdraw, a vote will be conducted to decide on the viability of liquidation under the existing circumstances.
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