Go First lenders will convene a meeting next week to take a call on the way forward, sources told CNBC-TV18. The sources added that the Committee of Creditors (CoC) held meetings on November 22 and 23 after no bids were received for the beleaguered airline.
CNBC-TV18 was among the first to report that the Naveen Jindal-backed Jindal Power Ltd (JPL), the only company whose expression of interest (EOI) to take over Go First, was accepted by creditors, has decided to not follow through with a bid.
The deadline to submit takeover bids ended on Tuesday (November 21). The power generation company filed its EOI last month. The EOI was floated by the airline’s resolution professional Shailendra Ajmera in July 2023.
Some of India's well-known banks such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the top creditors to the crisis hit airline. Banks are not inclined to restart the bidding process due to the lack of interest from suitors and are weighing all options including, liquidation.
Additionally, uncertainty over aircraft issues, with ongoing litigation in Delhi HC, still persists. Go First is currently locked in a legal tussle with its lessors after they were blocked from repossessing planes due to a moratorium imposed by the courts.
Go First has total liabilities of ₹11,463 crore of which bank dues are of ₹6,521 crore.
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