Go First Crisis: Airline Bidder Boosts Offer After Push From Banks, Says Report

Go First, which entered bankruptcy proceedings in May of the previous year, received two financial bids as part of the bankruptcy process

One of the two bidders vying for the bankrupt Indian airline Go First has reportedly revised its offer after encouragement from lenders. The consortium, led by SpiceJet's managing director Ajay Singh and Busy Bee Airways, has augmented the bid by an additional sum ranging between Rs 100 crore ($12.06 million) and Rs 150 crore, according to a report by the news agency Reuters, citing sources. The report further claims that the initial bid was set at Rs 1,600 crore.

Go First, which entered bankruptcy proceedings in May of the previous year, received two financial bids as part of the bankruptcy process. The second bid came from the Sky One Airways, based in Sharjah. "The bid amount in both the offers was far below the expectations of the Committee of Creditors (CoC) and would involve a deep haircut, which is why both the bidders were asked to revise their offer upwards," a banker affiliated with a state-run bank holding exposure to Go First issue told Reuters.

The bankruptcy filing of Go First outlines its indebtedness to various creditors, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, amounting to a total of Rs 6,521 crore. According to the report, the Committee of Creditors (CoC), facilitated by the resolution professional, is currently engaged in discussions with Sky One regarding the matter. 

However, Sky One Airways still needs to respond to a request for comment on the updates, claims the report. Additionally, the joint bid submitted by Singh and Busy Bee will be deliberated upon during the forthcoming CoC meeting related to the issue, anticipated to convene early next week, as revealed by the report. Lenders are anticipated to provide feedback to the bidders by March 28, as per the report.