India's specialist bankruptcy court, the National Company Law Tribunal (NCLT), has granted the administrator of Go First (Mumbai International) another 60 days to complete the carrier's corporate insolvency resolution process. The court granted the extension, which now runs until June 3, during an April 8 hearing.
Go First's administrator, known locally as a resolution professional, along with the committee of creditors, has been negotiating to sell the defunct carrier. At least two parties, Sharjah-based Sky One, and a partnership between Ajay Singh, managing director of SpiceJet (SG, Delhi International), and Nishant Pitti, CEO of online travel platform EaseMyTrip, have submitted initial bids to buy Go First. ch-aviation recently reported that Go First's sellers would approach the NCLT for more time to select a buyer and iron out the sale process.
Under India's Insolvency and Bankruptcy Code, a company declared insolvent has up to 330 days after first filing to complete the insolvency process. Go First's deadline was April 4. However, counsel for the carrier relied on exceptional circumstance provisions to secure the extra time this week. The two-judge bench indicated that the court was unlikely to approve any further extensions.
Meanwhile, lenders have taken possession of a 94-acre land parcel in Thane, a city northeast of Mumbai. Go First's owners, Wadia Group, provided the property as collateral against loans taken out by the airline. The land is valued at around INR20 billion rupees (USD240 million), slightly less than one-third of creditor claims against Go First.
However, given the value of the land, the lenders are reportedly keen to keep it separate from other assets. The publication of a possession notice next week should swiftly be followed by due diligence and final valuations in the run-up to an auction, which could happen within a month.
