In a recent development concerning the financially distressed budget carrier Go First, SpiceJet CMD ajay Singh, in collaboration with Busy Bee Airlines, has augmented their bid to acquire the airline. The bid has been upped by Rs 100 to 150 crore, reaching a total of Rs 1600 crore. This adjustment was prompted by the lenders' dissatisfaction with the initial offer, as they expected more.
Go First initiated the bankruptcy process in May 2023 by filing an application with the National Company Law Tribunal (NCLT). Subsequently, the airline received two financial bids, one from ajay Singh of SpiceJet and another from Sky One Airways of Sharjah. However, both bids fell short of the banks' expectations, leading to a request for an increase.
The airline disclosed a debt of Rs 65 billion to several banks, including bank of Baroda, IDBI bank, Central bank of India, and Deutsche bank, in its bankruptcy filing. These lenders are set to convene for a meeting next week to discuss the potential for further enhancements to the bid and evaluate the joint bid proposal from SpiceJet and Busy Bee.
The bid increase reflects efforts to address the lenders' concerns and bolster the prospects of Go First's revival. With financial pressures mounting and creditors seeking resolution, the outcome of the upcoming bank meeting holds significance for the airline's future. The joint bid by SpiceJet and Busy Bee underscores the interest in salvaging the budget carrier amidst its bankruptcy proceedings, signaling a collaborative approach to mitigate financial distress and chart a path towards stability.
