Wadia Group Seeks Partners To Bid For Crisis-Hit Go First: Report

A joint bid for Go First is being discussed by the group with financial investors such as private equity funds and alternative investment funds

Shailendra Ajmera, the RP of Go First, on Monday invited Expressions of Interest till August 9 from potential bidders for the grounded airline, which is working on ways to restart operations.

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In a bid to take back the reins of Go First, Wadia Group is looking for partners in order to bid for the crisis-hit airlines. A joint bid for the airline is being discussed by the group with financial investors such as private equity (PE) funds and alternative investment funds, a report by The Economic Times (ET) said. A final decision will depend on whether the grounded carrier can be considered airworthy again, according to the report.

Shailendra Ajmera, the resolution professional (RP) of Go First, on Monday invited Expressions of Interest (EoIs) till August 9 from potential bidders for the grounded airline, which is working on ways to restart operations. The cash-strapped carrier stopped flying on May 3 and is currently undergoing the voluntary insolvency resolution process.

According to the ET report citing experts, the former promoters are eligible to bid for the airline since they haven't defaulted on their loans. Through various entities owned by Nusli Wadia and his family, the group owned 100 per cent of Go First, the report added. The process of inviting an EoI signifies the formal commencement of seeking buyers or investors for a potential investment, in line with procedural requirements under Indian law.

Go Airlines, which operated the Go First carrier, did not immediately respond to a Reuters request for comment. The airline filed for bankruptcy protection in May blaming "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos.

Go First, which had been flying for more than 17 years, began facing severe financial headwinds as more than half of its fleet was grounded due to non-availability of Pratt & Whitney engines. On May 2, the no-frills airline filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) and the plea was admitted on May 10.

The airline has around 4,200 employees. It had a revenue of Rs 4,183 crore from operations in the financial year ended March 2022. The liabilities of the carrier are worth Rs 11,463 crore.