Updated February 23rd, 2024 at 17:50 IST

Lenders to open bids for bankrupt Go First on Friday in search for buyers

Sources suggest that the bidders are optimistic about GoFirst receiving a $300 million arbitral award from engine-maker Pratt & Whitney (P&W).

Reported by: Business Desk
Go First | Image:Go First
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Go First bid: Bids for the bankrupt airline Go First are scheduled to be opened on Friday, February 23, as lenders seek potential buyers. The lenders, along with the committee of creditors, will convene to evaluate the bids, CNBC-TV18 reported citing sources.

Last week, it was reported that Ajay Singh, the CMD of SpiceJet, and Busy Bee Airways, primarily owned by EaseMyTrip CEO Nishant Pitti, jointly submitted a bid for Go First Airlines on February 16.

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Sources suggest that the bidders are optimistic about Go First receiving a $300 million arbitral award from engine-maker Pratt & Whitney (P&W). 

One potential strategy under consideration is to sell the arbitral award to a third party to expedite fund access for Go First.

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Additionally, the bidders plan to monetise the company's assets, including land, and explore selling the 72 Airbus aircraft slots Go First currently possesses to other airlines.

Competing against Singh and Pitti's consortium is Sky One, another bidder for Go First, primarily operating chartered helicopter and cargo services from Sharjah. The bids will undergo due diligence, expected to conclude in the latter half of March.

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Sources stress upon the importance of staff continuity in the revival plan, with the consortium intending to retain the majority of Go First's 460 remaining employees to maintain expertise within the workforce.

Go First entered voluntary insolvency proceedings nearly ten months ago, resulting in the airline's grounding, with the aim of restructuring and resuming flights.

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Despite previous attempts to secure a buyer, the Committee of Creditors and Resolution Professionals continue their search for a successful bid in this ongoing insolvency resolution process.

Go First ceased operations on May 3, 2023, due to financial difficulties primarily stemming from Pratt & Whitney engine issues.

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Published February 23rd, 2024 at 17:50 IST