Bids for bankrupt Go First set to open on February 23 as lenders search for suitors: Reports

The Committee of Creditors and the Resolution Professionals are now looking for another buyer.

Bids for the bankrupt airline Go First will be opened today as lenders search for a buyer. The Go First lenders and the committee of creditors are meeting today to review the bids. Sources told CNBC-TV18 that lenders and the IRP will open the bids during the meeting.

CNBC TV18 reported last week that SpiceJet's CMD Ajay Singh and Busy Bee Airways, which is largely owned by EaseMyTrip CEO Nishant Pitti, have submitted a joint bid for Go First Airlines on Friday, February 16.

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According to CNBC-TV18 sources, the bidders for Go First airline are confident that the company will be able to receive the $300 million arbitral award it has won from engine-maker Pratt & Whitney (P&W). One possible course of action being considered is to sell the arbitral award to a third party for realisation, which will provide Go First with immediate access to funds. It appears that the bidders not only intend to monetize the company's land, but also plan to sell the 72 Airbus aircraft slots that Go First currently holds to other airlines.

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Singh and Pitti's consortium is competing against Sky One, the other bidder for Go First in these voluntary insolvency resolution proceedings. Sharjah-based Sky One mainly operates chartered helicopter and cargo services. The bids will now undergo due diligence, which is expected to conclude in the second half of March.

Sources also indicate that staff continuity is an important aspect of this revival plan. The consortium intends to keep the majority of Go First's 460 remaining employees to ensure continuity and expertise within the workforce.

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Almost ten months ago, Go First entered a voluntary insolvency process, which resulted in the airline being grounded. The goal was to restructure and resume flights. The Committee of Creditors and the Resolution Professionals are now looking for another buyer. So far, they have not been successful, and the third attempt to find a winning bid is ongoing.

Go First, which stopped flying on May 3, 2023, amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process.