Lenders to India’s Go First will meet later this week to discuss options for the bankrupt airline, including liquidation, after a court order allowed lessors of the aircraft to take back their planes, two bankers with Go First‘s creditors said on Tuesday.
“There is no value left in the airline after the court order and chances of revival seem very grim,” one of the bankers said.
Go First‘s resolution professional did not immediately respond to a Reuters’ email seeking comment.
The airline owes a total of 65.21 billion rupees ($780.88 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.
The Committee of Creditors (CoC) met on Monday and another meeting is scheduled for Thursday, both sources said.
The two bankers did not wish to be identified because they are not authorised to speak with the media.
Go First has received two bids under the formal bankruptcy process – one from a consortium which includes budget carrier SpiceJet’s managing director Ajay Singh and Busy Bee Airways, and the second from Sharjah-based Sky One, Reuters previously reported.
Sky One’s Chairman Jaideep Mirchandani said on Friday the de-registration of aircraft does not alter its plans for the Indian aviation industry.
“If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” said Mirchandani.
Ajay Singh and Busy Bee’s majority shareholder Nishant Pitti did not respond to emails seeking comment.
Lenders may still choose to reject the bids on the table as they are not happy with the sums offered currently by both the applicants, the second banker said.
The bids include the value of a piece of land offered as collateral by the airline’s promoters, the banker said.
Reuters had earlier reported that lenders had sought higher bids.
While liquidation seems to be the most viable option under the present circumstances, it will be put to a vote once the committee formally rejects the two offers or if the applicants back out, both the bankers said.
Reuters