Jindal Power submits EoI for grounded Go First, is the only bidder

Go First suspended its operations on May 3.

Naveen Jindal’s Jindal Power has reportedly expressed interest in buying the beleaguered low-cost Go First carrier, which is owned by the Wadia family and is the first commercial airline in India to have voluntarily sought bankruptcy protection.

The expression of interest (EoI) was submitted by unlisted Jindal Power, owned by Worldone Pvt Ltd, a closely held company of Jindal, the Economic Times reported, citing sources. The sources, however, did not give any clarity on whether Jindal Power was seeking to acquire the airline outright or come in as a strategic investor in Go First.

Moneycontrol could not verify the report independently.

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There were two other bidders for the airline but did not meet the eligibility criteria set out by the creditors, suggesting that their bids were not considered for further evaluation in the acquisition process of Go First, the report said. In July, Go First’s resolution professional invited EoIs for the carrier’s sale.

“The government, the legal ecosystem and regulators are moving as swiftly as possible on the legalities to save the airline,” an official, requesting not to be named, told the financial daily.

The crisis-hit airline is facing significant financial challenges with more than Rs 20,000 crore in admitted claims from creditors.

Naveen Jindal, the promoter of Jindal Steel and Power, has been diversifying his business interests in recent years, expanding his privately held business empire and exploring new ventures.

He has made acquisitions in various sectors, including steel, power, and coal mining, and is also looking to venture into renewable energy. The interest in Go First signifies a strategic move into the aviation sector, showcasing a broader diversification strategy.

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Go First is racing against time to resume its services. The airline's lenders extended the deadline for the submission of EoIs twice, as there was a lack of interest from potential buyers. The latest deadline for EoI submission was set for September 28.

The airline filed for voluntary insolvency proceedings in the National Company Law Tribunal (NCLT) on May 2, attributing the decision to substantial revenue losses.

Go First, formerly GoAir, blamed aircraft engine maker Pratt & Whitney, for providing defective engines that led to the grounding of almost half of its 56-plane fleet, a charge denied by the American company.

The airline, which suspended operations on May 3, is facing claims amounting to $2.9 billion from both operational and financial creditors.