- July 10, 2023
Cash-Strapped Airline Go First Looks For Bidders To Fly Again
The liabilities of Go First are worth Rs 11,463 crore (Representational)
New Delhi:
Go First’s resolution professional on Monday invited expressions of interest till August 9 from potential bidders for the grounded budget airline, which is working on ways to restart operations.
The cash-strapped carrier stopped flying on May 3 and is undergoing the voluntary insolvency resolution process.
The deadline for submitting Expressions of Interest (EoIs) is August 9 and the final list of prospective resolution applicants will be declared on August 19, according to the public notice issued by the resolution professional Shailendra Ajmera.
The last date for submitting any objections to the provisional list is August 24.
On May 2, the no-frills airline filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) and the plea was admitted on May 10.
Go First, which had been flying for more than 17 years, began facing severe financial headwinds as more than half of its fleet was grounded due to non-availability of Pratt & Whitney engines.
The airline has around 4,200 employees. It had a revenue of Rs 4,183 crore from operations in the financial year ended March 2022.
The liabilities of the carrier are worth Rs 11,463 crore.
Last month, Go First’s Committee of Creditors (CoC) comprising Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, was formed under the Insolvency and Bankruptcy Code (IBC).
Later, the CoC submitted a revival plan to the Directorate General of Civil Aviation (DGCA) for restarting operations.
The DGCA conducted a special audit of the facilities of Go First in Mumbai and Delhi from July 4 to 6. Based on the audit findings, the regulator will decide on approving the airline’s revival plan.
The airline has cancelled all its flights till July 14.
“… due to operational reasons, Go First flights scheduled till 14th July 2023 have been cancelled,” it said in a tweet on Monday.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
