Bankrupt Indian low-cost airline Go First has received two bids for new ownership as part of its bankruptcy process, with Spicejet’s chairman and Busy Bee Airways majority shareholder reportedly submitting a joint offer, and Sky One Airways also placing a bid.
Reports citing bankers familiar with the process have said that Spicejet’s managing director Ajay Singh has submitted a joint offer with Busy Bee’s Nishant Pitti of Rs16bn ($193m) while Sky One’s exact offer has not been disclosed.
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Go First ceased flying in May 2023 after facing numerous operational difficulties that it partially blamed on supply chain issues with Pratt & Whitney engines, and subsequently filed for bankruptcy, listing debts of Rs65.21bn to various creditors including the Central Bank of India and Deutsche Bank.
The airline, which had once been one of the largest in India, had been looking to sell off its assets to pay off debts and move closer to returning to service following multiple funding rounds. But it could be saved by a successful bid from either of the two bidding parties after India’s National Company Law Tribunal granted it a 60 day extension to the insolvency resolution process.
Singh’s bid with Pitti, which Spicejet clarified was submitted in a personal capacity away from his role with the airline, included additional funds to help restart operations for Go First according to the reports as well as plans to use the airline’s land portfolio to cover dues.
Despite being submitted personally, Singh’s involvement in a bid is of particular interest as it comes shortly after Spicejet said it would begin layoffs, reported to be of between 1,000 and 1,400 staff, as it struggled to balance finances.
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