Lowballed, banks may seek better offer for Go First; liquidation a possibility
economictimes.indiatimes.comGo First may ask bidders in the resolution process for the airline to improve their offers in order to maximise recoveries, people involved in the process said. The lenders may opt for liquidation if the bids aren’t good enough, said the people cited above.
The only two bids for the airline were opened Friday and resolution professional (RP) Shailendra Ajmera will now check if they are compliant with the Insolvency and Bankruptcy Code (IBC). Central Bank of India and Bank of Baroda are the main lenders to the grounded carrier. The RP has admitted claims of Rs 7,040 crore out of which Rs 4,257 crore is from financial creditors led by Central Bank of India.
None of Bidders in 'Best of Financial Health'
People involved in the process said that only a small portion of the total bid amount is upfront and the rest is contingent on factors such as retention of aircraft, slots and bilateral rights as well as clarity on compensation in its case against American engine maker Pratt & Whitney.
A consortium of SpiceJet owner Ajay Singh and Nishant Pitti, co-owner of online travel firm EaseMyTrip, is the front runner with a total bid of Rs 600 crore, said the people cited above.
The other bid is by Sharjah-based SkyOne owned by Jaideep Mirchandani, who also has a majority stake in regional carrier Zoom Air, which has been grounded for over five years.
«Both plans were opened but lenders have not yet gone through the deals of both plans,» said a person familiar with the matter. «Details will be available after the minutes of
