30 April 2024
Lenders of India's Go First are scheduled to meet later this week to deliberate on the fate of the insolvent airline, including potential liquidation, reported news agency Reuters.
The development comes after the Delhi High Court passed an order that allowed Go First’s lessors to take back their planes.
"There is no value left in the airline after the court order and chances of revival seem very grim," said one of the bankers with Go First's creditors quoted in the report.
The airline currently owes a sum of Rs 6521 crore ($780.88 million) to various creditors, including Central Bank of India (CBI), Bank of Baroda (BOB), IDBI Bank, and Deutsche Bank.
The Committee of Creditors (CoC) met on Monday, with another meeting scheduled for Thursday, as confirmed by sources familiar with the matter.
Under the formal bankruptcy proceedings, Go First has received two bids. One bid is from a consortium led by SpiceJet's managing director, Ajay Singh, and Busy Bee Airways. The second bid comes from Sky One, based in Sharjah, as previously reported by Reuters.
Chairman of Sky One, Jaideep Mirchandani, mentioned on Friday that the aircraft's deregistration does not affect their plans for the Indian aviation sector.
"If our bid is successful, Sky One can bring in its own resources to operate and revive the airline, given our experience as lessors," said Mirchandani.
Lenders of India's Go First are scheduled to meet later this week to deliberate on the fate of the insolvent airline, including potential liquidation, reported news agency Reuters.
The development comes after the Delhi High Court passed an order that allowed Go First’s lessors to take back their planes.
"There is no value left in the airline after the court order and chances of revival seem very grim," said one of the bankers with Go First's creditors quoted in the report.
The airline currently owes a sum of Rs 6521 crore ($780.88 million) to various creditors, including Central Bank of India (CBI), Bank of Baroda (BOB), IDBI Bank, and Deutsche Bank.
The Committee of Creditors (CoC) met on Monday, with another meeting scheduled for Thursday, as confirmed by sources familiar with the matter.
Under the formal bankruptcy proceedings, Go First has received two bids. One bid is from a consortium led by SpiceJet's managing director, Ajay Singh, and Busy Bee Airways. The second bid comes from Sky One, based in Sharjah, as previously reported by Reuters.
Chairman of Sky One, Jaideep Mirchandani, mentioned on Friday that the aircraft's deregistration does not affect their plans for the Indian aviation sector.
"If our bid is successful, Sky One can bring in its own resources to operate and revive the airline, given our experience as lessors," said Mirchandani.
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