The committee of creditors (CoC) of Go First (Mumbai International) has voted to liquidate the insolvent carrier after offers to buy it fell short of expectations, according to multiple Indian news reports. An insolvency application will be filed at the National Company Law Tribunal (NCLT), a specialist bankruptcy court, on August 5.
A sales campaign for Go First culminated in two formal bids earlier this year, one from a consortium comprising SpiceJet (SG, Delhi International) promoter Ajay Singh and EaseMyTrip’s Nishat Pitti, and the other being Sharjah-based Sky One. After receiving the bids, the CoC expressed concerns about their structure and upfront cash components. In May, following a Delhi High Court decision allowing lessors to deregister and export their aircraft leased to Go First, Singh and Pitti withdrew their bid, leaving Sky One as the only potential buyer.
Go First suspended flights in May 2023, with the airline's administrator later accepting creditor claims totalling INR65.21 billion rupees (USD780 million). Among the biggest creditors are several banks, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, who all sit on the CoC, the first three of which are owed INR19.34 billion rupees (USD231 million), INR17.44 billion (USD208 million), and INR750 million (USD9 million), respectively.
Go First was heavily impacted by Pratt & Whitney engine issues at the time of its collapse, with much of the fleet grounded. Go First has since filed a claim against the engine manufacturer in the Singapore Court of Arbitration and hopes to gain around USD1 billion in compensation. The CoC now believes that pursuing this claim is the best way to recoup all or some of the monies owed to them.
Recently, the NCLT granted Go First's administrator a two-month extension to resolve the airline's fate by either selling it or liquidating it. That extension expired on August 3, and the NCLT had said no further extensions would be granted.
