Go First heads for liquidation after discussions on bids come up short
Go First airline are set to move towards liquidation of the airline after finding no headway between banks and the two prospective bidders, five months after bids were formally received for the Wadia Group-owned carrier, said people familiar with the matter.
Lenders are putting final touches to a voting proposal seeking liquidation of the airline after both the bids — from a consortium of EaseMyTrip CEO Nishant Pitti and SpiceJet chairman Ajay Singh, and from Sharjah-based Sky One Aviation — were below their expectations. The voting proposal may be put up before the committee of creditors this week, the people said.
«Some processes like selection of proposed liquidator, calculating the cost of liquidation and funding of liquidation are being done, after which the proposal will be put to vote this week,» said one of the persons, who did not wish to be identified.
The timeframe for the insolvency process ends on August 3, before which creditors are likely to come to a decision.
«After negotiations with bidders, there was little scope for any increase. More importantly, both the bids were dependent on the ongoing arbitration claims in Singapore which lenders themselves are eyeing, so there is no point in dragging on this process now,» said the person.
ET's queries emailed to resolution professional Shailendra Ajmera and lead lender Central Bank of India did not elicit a response till press time. Lenders expect a better recovery from the airline's ongoing arbitration proceedings in Singapore against US-based engine
