Will this ₹7,000-crore rescue plan save Go First?

livemint.com:

₹7,000 crore rescue plan for bankrupt airline Go First, two people aware of the development said. Go First's committee of creditors on Friday discussed this bid, as well as a rival bid from Sky One, the people cited above said on condition of anonymity. “The joint bid by Singh is higher than the other party (Sky One).

The committee of creditors will announce their decision in 15 days after further discussion and assessment," one of two people said. Sky One's bid amount could not be ascertained. The Go First rescue attempt received a fresh lease of life last week after receiving two bids.

The carrier, which has been grounded since May 2023, has been undergoing an insolvency process since then. SpiceJet chairman and managing director Singh submitted his bid jointly with Busy Bee Aviation. Nishant Pitti, co-founder of online travel platform EaseMyTrip, has a 51% stake in Busy Bee Aviation, while the remaining 49% stake is held by local investors.

“The joint-party bid has made an upfront payment of ₹300 crore. As per their proposed plan, they are likely to monetize the land assets of Go First for the amount owed to the banks," the second person cited above said. Queries sent to SpiceJet, Ajay Singh, and Sky One remained unanswered.

When contacted, Pitti said the bid remains ‘confidential.’ "Our bid for launching the airline remains confidential, guarded by the committee of creditors (CoC) until a successful bidder is announced. With a clear objective in mind, we are poised to commence operations swiftly, ensuring GoFirst takes to the skies without delay," Pitti said. Go First owes ₹6,521 crore to lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank and IDBI Bank.