Jindal Power, only suitor in fray for Go First, might not bid for a take over
The deadline to submit takeover bids ends on Tuesday. The EOI was floated by the airline’s resolution professional Shailendra Ajmera in July, 2023.
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, Reuters reported.
The deadline to submit takeover bids ends 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.
"The EoI was largely to check the valuation of the airline and get access to the company's data," Reuters said in its report citing a source closer to the development. "After evaluation, the company has decided not to put in a bid."
'Employees are taking up any job that they are getting, they aren't giving any notice as airline has no assurance on salary payment,' said a source who is still in the airline. According to sources, Go First owes about ₹900 crore to travel agents and passengers and about ₹240 crores as pending salaries of staff for six months.
Employees were hoping for promoter Wadia Group to come up with a bailout plan for the airline but noting as such is in sight and all signs only point to a state of liquidation.
The crisis-hit airline filed for voluntary insolvency in May 2023 and owes a total of $785.6 million to its creditors. Creditors to the low-budget carrier had rested their hopes on JPL for the revival of the company.
The Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the top creditors to Go First.
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. The report further added that banks are already evaluating a property that is held as collateral.
First Published: Nov 21, 2023 3:11 PM IST
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