Jindal Power, only suitor in fray for Go First, might not bid for a take over

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.

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.