India's National Company Law Tribunal has granted the administrators of insolvent Go First (Mumbai International) a further 60 days to find a buyer after three prospective purchasers filed expressions of interest (EOIs) along with bank guarantees. The extension was given during a February 13, 2024, hearing.
Shailendra Ajmera, Go First's resolution professional, India's equivalent of a company administrator, applied to the Delhi bench of the NCLT for the time extension, with the support of the committee of creditors (CoC). Go First ceased operations in early May 2023. Since then, Ajmera has accepted creditor claims exceeding INR62 billion rupees (USD746 million).
ch-aviation recently reported that the CoC had decided to make one more attempt to find a buyer after a previous sales campaign failed. Enticing the CoC to try again are three potential buyers - SpiceJet (SG, Delhi International), Sharjah-based Sky One, and an entity called Busy Bee. All have submitted formal EOIs accompanied by the required INR50 million (USD601,800) bank guarantee.
India's insolvency laws give administrators up to 330 days to sell an entity after it begins the formal NCLT-supervised corporate insolvency resolution process. The NCLT's latest time extension, valid through April 4, takes Go First's resolution process to the 330-day limit. Go First may be liquidated if no buyer is found within that time.
