Singh-Pitti consortium's ₹1,600 Cr proposal to buy Go First
The bidders are offering ₹1,000 crore to buy Go First, along with the collateral and corporate guarantee.
Ajay Singh and Nishant Pitti’s consortium have proposed to buy Go First for ₹1,600 crore, said a source involved in the bidding process.
CNBC-TV18 reported on Monday, February 19, that the bidders have a ₹600 crore plan to restart the grounded airline. And here's how the numbers stack up.
The bidders are offering ₹1,000 crore to buy Go First, along with the collateral and corporate guarantee. It has been learned that there's a 93 acre land parcel worth over ₹2,000 crore held as collateral from Wadia Realty by two PSU banks. The remaining ₹600 crore is proposed for restarting operations with strategic initiatives.
As per the source, Busy Bee has already paid ₹10 crore as a bank guarantee along with its resolution plan. They plan to deposit ₹200 crore as a performance guarantee if they are chosen as the successful bidder to revive Go First. The payment plan also includes ₹100 crore as working capital and ₹60 crore to clear the dues of workmen and employees.
"Our bid for launching the airline remains confidential, guarded by the committee of creditors until a successful bidder is announced," said Nishant Pitti, the owner of Busy Bee and EaseMyTrip, when asked for his comment on the bid proposal.
With a clear objective in mind, we are poised to commence operations swiftly, ensuring Go First takes to the skies without delay, Pitti added.
It remains to be seen if creditors get convinced by Busy Bee's revival plan and which of the two bidders will hand over the airline's ownership.
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