FCC

Bid for bankrupt Go First airlines raised by SpiceJet's Ajay Singh

2024-03-26

Ajay Singh, Chairman and Managing Director of SpiceJet, has increased the bid for Go First, a bankrupt Indian airline, following pressure from lenders. The consortium, including Singh and Busy Bee Airways, raised the offer by Rs 1-1.5 billion, up from the original bid of Rs 16 billion. Sources, who requested anonymity, revealed this information, as official comments from Go First's resolution professional, Singh, or Busy Bee's majority shareholder Nishant Pitti were not immediately available.

Go First, which filed for bankruptcy last year in May 2023, garnered interest from two bidders in its bankruptcy process, the other being Sharjah-based Sky One Airways. Both bids fell short of creditors' expectations, leading to a request for upward revisions. Go First's outstanding debt amounts to Rs 65.21 billion, owed to several creditors, including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. The Committee of Creditors (CoC) is currently engaged in discussions with Sky One Airways.

The joint bid by Ajay Singh and Busy Bee will be deliberated upon in the upcoming CoC meeting, expected to convene early next week. Lenders are anticipated to provide feedback to the bidders by 28 March as negotiations continue to determine the future of Go First.