The committee of creditors (CoC) has approved the administrators of Go First (Mumbai International) making a final effort to secure a buyer of the insolvent budget carrier after earlier sales campaigns failed to produce a result. While several entities have shown interest in acquiring Go First, none have taken the next step.
"Banks have decided to give the resolution process another go and allow those suitors who have shown prior interest a chance to submit a concrete bid," a banker with knowledge of proceedings told Reuters earlier this week.
Local competitor SpiceJet had previously confirmed it was looking at Go First, but it has proceeded no further than the due diligence process. Other entities similarly interested but uncommitted include Sharjah-based Sky One, Africa-focused Safrik Investments, a consortium called Plan IT, and US-based NS Aviation.
The report said that the CoC had set a January 31 deadline for a firm offer. However, if one fails to materialise, it may decide to cut its losses and liquidate the company. The airline ceased operations in May 2023 and has admitted to outstanding debts of more than INR62 billion rupees (USD745.8 million).
While India's insolvency laws provide for further extensions of time to secure a buyer, the committee is reportedly reluctant to consider this, given that no party has offered to buy Go First since it stopped flying.
