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Updated February 6th, 2024 at 19:45 IST

Go First's lenders seek 60-day extension in insolvency process amid potential suitors' interest

Go First, which initiated bankruptcy proceedings in May last year, would reach the 270-day mark in the resolution process by February 4.

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Go First insolvency: Lenders overseeing the insolvency proceedings of India's Go First are considering a 60-day extension in the resolution process, buoyed by interest from potential suitors, news agency Reuters reported quoting two banking sources.

As per the country's Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT) has the discretion to extend the resolution timeframe to a maximum of 330 days.

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Go First, which initiated bankruptcy proceedings in May last year, would reach the 270-day mark in the resolution process by February 4.

The struggling airline has attracted expressions of interest from prominent figures such as SpiceJet promoter Ajay Singh, UAE-based Sky One, and Busy Bee, the report said.

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"Formal expressions of interest and bank guarantees have been submitted by the three suitors, and they will need 15-20 more days to conduct due diligence and place formal bids," stated the first banker, representing a state-run bank with exposure to Go First.

As of now, Go First's resolution professional, responsible for overseeing the insolvency process, has not responded to media inquiries.

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The Committee of Creditors (CoC) is scheduled to convene on Thursday to decide on a revised date for bid submissions, according to the second banker.

Go First's bankruptcy filing identifies creditors, including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to whom the airline owes a total of Rs 6,521 crore.

(With Reuters inputs.)

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Published January 31st, 2024 at 21:54 IST

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