Go First lenders to vote on liquidation amid lack of suitors: Report
Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank are among the airline's creditors. Jindal Power, the sole company whose expression of interest to take over Go First was accepted by creditors, also decided to not follow through with a bid, Reuters reported.
"Liquidation is the only viable option before banks as legal troubles are deterring suitors," said the second banker. "Since there is (land) collateral backing the loan, it is better to opt for liquidation rather than spending more money on the insolvency process." Go First is also locked in a legal tussle with its lessors after a moratorium imposed by Indian courts blocked them from repossessing planes.
A recent amendment to India's insolvency rules allows lessors to take back the planes, but a court has yet to determine whether this change can be applied retrospectively to Go First. Milestone Alert!
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