GoFirst lenders voting to consider allowing time for Spicejet, others to submit bid

The e-voting is already underway and will end on January 6, as stated by one of the people involved in the matter. Once the voting results are known, the creditors' committee will hold a meeting next week to decide on the next steps, and the resolution professional will conduct due diligence on the eligibility of the players, added this person.

CNBC-TV18 had also earlier accessed SpiceJet CMD Ajay Singh’s letter to GoFirst's Resolution Professional (RP) Shailendra Ajmera, which read, “The Company has recently approved and initiated the process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans. The Company is interested in the resolution process of GoFirst and wishes to submit an Expression of Interest (“EoI”) along with a viable resolution plan for the revival of GoFirst... We understand that the last date for submitting EoI has elapsed and, therefore, request you to please allow us to file EoI for GoFirst along with a credible revival plan within a definite timeline.”

GoFirst has total liabilities amounting to ₹11,463 crore, of which bank dues make up ₹6,521 crore. Lenders, including Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank, are among the key creditors involved in this case.

While it remains to be seen if any of these players can come up with an attractive bid for GoFirst, the development is being viewed positively by lenders who believe this gives GoFirst a longer runway before its fate is sealed, as banks had earlier even considered liquidating the airline when it did not receive any interest in the November round of bids.