Go First Bids Open as SpiceJet and Busy Bee Airways Jointly Compete in Insolvency Resolution

23 Feb 2024 , 02:37 PM

Bids for bankrupt airline Go First will be opened today as lenders seek potential buyers, with lenders and the committee of creditors convening to review the bids.

SpiceJet’s CMD Ajay Singh and Busy Bee Airways, owned by EaseMyTrip CEO Nishant Pitti, jointly submitted a bid for Go First Airlines on February 16, as reported by CNBC TV18.

Bidders for Go First airline are optimistic about receiving a $300 million arbitral award from engine-maker Pratt & Whitney (P&W). One strategy under consideration is selling the arbitral award to a third party for immediate access to funds. Additionally, plans include monetizing company land and selling 72 Airbus aircraft slots to other airlines.

Singh and Pitti’s consortium faces competition from Sky One, primarily operating chartered helicopter and cargo services, in these voluntary insolvency resolution proceedings.

Bid submissions will undergo due diligence, expected to conclude in the second half of March. The consortium emphasizes the importance of staff continuity, intending to retain the majority of Go First’s 460 remaining employees to maintain expertise and continuity within the workforce.

Go First entered voluntary insolvency almost ten months ago, resulting in the airline’s grounding, with the aim of restructuring and resuming flights. The ongoing search for a buyer marks the third attempt by the Committee of Creditors and Resolution Professionals.

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