Following a recent court order permitting Go First's lessors to reclaim their aircraft, lenders of the insolvent Indian airline are slated to convene later this week to deliberate on the company's future, potentially including liquidation, according to Reuters.
This development materialized after a ruling by the Delhi High Court, which granted Go First's lessors the right to retrieve their planes.
An unnamed banker quoted in the report remarked, "There is no value left in the airline after the court order and chances of revival seem very grim."
As of now, Go First is indebted to various creditors, amounting to Rs 6521 crore ($780.88 million), including the Central Bank of India (CBI), Bank of Baroda (BOB), IDBI Bank, and Deutsche Bank.
The Committee of Creditors (CoC) convened on Monday, with another meeting scheduled for Thursday, as per sources familiar with the situation.
Within the formal bankruptcy proceedings, Go First has received two bids. One bid originates from a consortium spearheaded by Ajay Singh, managing director of SpiceJet, along with Busy Bee Airways. The second bid is from Sky One, headquartered in Sharjah, as previously reported by Reuters.
Jaideep Mirchandani, Chairman of Sky One, stated on Friday that the deregistration of the aircraft does not hinder their plans for the Indian aviation sector.
"If our bid is successful, Sky One can bring in its own resources to operate and revive the airline, given our experience as lessors," Mirchandani affirmed.
Nevertheless, a banker underscored that lenders may rebuff the current bids due to dissatisfaction with the proposed amounts from both contenders.
Additionally, the bids entail the valuation of a parcel of land offered as collateral by the airline's promoters, according to the banker.
Earlier reports from Reuters indicated that lenders were seeking higher bids than those currently on offer.
Although liquidation seems to be the most feasible option under the prevailing circumstances, the decision will be subject to a vote once the committee formally rejects the existing bids or if the applicants withdraw, elucidated both bankers cited in the report.
