Go First Receives Two Bids in Bankruptcy Process, SpiceJet Leads with $193 Million Offer

Go First Receives Two Bids in Bankruptcy Process, SpiceJet Leads with $193 Million Offer

Mumbai A glimmer of hope emerged for India's grounded airline Go First as it received two financial bids during its ongoing bankruptcy proceedings. The news, reported by Reuters, sheds light on the potential revival of the carrier, which ceased operations in May 2023.

SpiceJet Takes the Lead Leading the charge is a joint bid by Ajay Singh, Managing Director of budget carrier SpiceJet, and Busy Bee Airways. Their offer stands at 16 billion rupees ($193.1 million), promising an "additional fund infusion to restart the airline's operations," according to a banker involved in the process.

Competition Emerges However, SpiceJet isn't alone in the race. Sharjah-based Sky One Airways also submitted a bid, though its value remains undisclosed and reportedly falls short of the SpiceJet-Busy Bee offer. Due diligence on both bids is expected to be completed next month.

A Mountain of Debt Go First's path to revival won't be easy. The airline owes a staggering 65.21 billion rupees to creditors, including prominent names like Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. Successfully navigating this financial burden will be crucial for any potential buyer.

Uncertain Future While the bids offer a potential lifeline, Go First's future remains uncertain. The success of either offer hinges on due diligence and the approval of the Committee of Creditors. Until then, the airline's employees, passengers, and stakeholders wait with bated breath for the next chapter in its story.

Stay tuned for further updates as the Go First bankruptcy process unfolds.


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