The parties vying to take control of insolvent Go First (Mumbai International) have altered their bids ahead of a March 22 meeting when the administrator and lenders are expected to meet and assess the offers.
A partnership between Ajay Singh, managing director of SpiceJet (SG, Delhi International), and Nishant Pitti, CEO of online travel platform EaseMyTrip, had offered INR16 billion rupees (USD192 million), including INR2.9 billion (USD34.8 million) upfront. The competing buyer, Sharjah-based Sky One, has not disclosed its bid's total value but initially said it would pay INR4.1 billion (USD49.2 million) upfront.
As ch-aviation reported earlier this month, neither upfront offer is enough to cover the circa INR6 billion (USD72 million) costs of the insolvency administration process, let alone any other debts. Since Go First suspended operations in May 2023, creditors, including banks and lessors, have submitted claims of INR65.21 billion (USD783 million). It was reported at the time that further meetings would be held with both parties to ask them to increase the upfront cash component of their offers.
Core to both bids is the USD1 billion plus damages payment expected from Pratt & Whitney in connection with an engine issue lawsuit. Sky One has proposed handing over 25% of the proceeds to settle existing Go First debts, while Singh-Pitti has offered to repay creditors 100% of the lawsuit's proceeds. However, there is no fixed timeline for when this money will arrive and no absolute certainty the proceedings will resolve in Go First's favour (although it is expected they will).
Following the meetings, India's CNBC broadcaster reported that Sky One had raised the upfront cash component of its offer to INR7.5 billion (USD90 million) and left the lawsuit proceeds offer as is. The Singh-Pitti partnership reportedly increased its overall offer to INR17-17.5 billion (USD204-210 million) but left the upfront cash offer the same.
In addition to deciding the financial viability of the bids, lenders and the administrator must also ensure the the offers comply with India's Insolvency and Bankruptcy Code.
