In a race to acquire the financially beleaguered carrier Go First, India’s budget airline SpiceJet, Sharjah-based Sky One company, and Africa-focused Safrik Investments have expressed their interest. Following the submission deadline for proposals and amid considerations of liquidation by lenders, the three contenders have requested the resolution professional overseeing Go First’s corporate insolvency resolution process (CIRP) to conduct due diligence on the grounded airline, as reported by CNBC-TV18.
Go First, promoted by the Wadias, initiated voluntary insolvency proceedings before the National Company Law Tribunal (NCLT) in May, citing engine supplier Pratt & Whitney’s issues as a primary factor. The airline’s total liabilities, amounting to Rs 11,463 crore, with Rs 6,521 crore in bank dues, play a crucial role in ongoing resolution discussions with creditors.
While SpiceJet, known for its aviation sector expertise, is considered a serious contender, the airline’s financial struggles have raised skepticism among financial institutions. Last week, SpiceJet announced plans to raise over Rs 2,250 crore, a move seen as crucial support for its potential acquisition of Go First.
The lenders of Go First are set to convene a meeting later this week to determine the future course of action. Meanwhile, SpiceJet’s stocks experienced a substantial surge, reaching a 52-week high with a notable 19.56% increase on December 18, following reports of its interest in acquiring Go First.
