India's Go First airline gets expression of interest from Jindal Power - sources (updated)

Central Bank of India

11/10/2023 17:19

(Adds details, background)
    By Siddhi Nayak
       MUMBAI, Oct 11 (Reuters) - Grounded Indian airline Go
First has received an expression of interest (EoI) from Jindal
Power Ltd, two banking sources and two people aware of the
development told Reuters.
    An EoI is the first step in the bidding process and may not
result in a financial bid.
    "Jindal Power was the sole successful applicant whose
expression of interest was accepted by banks," said a banker
with a state-run bank that has exposure to Go First. 
    The power generation company "will be conducting proper due
diligence and post which it could submit a formal bid", said the
banker, who did not wish to be named as he was not authorized to
speak to the media.
    Go First's resolution professional, who conducts the
insolvency process, and Jindal Power did not immediately respond
to Reuters requests for comment.
    The last day to submit EoIs was Sept. 28, the banker said,
and a committee of lenders met to assess the applications after
that. 
    Two other foreign entities had also submitted EoIs to bid
for Go First, but their applications were rejected for failing
to meet the criteria set by lenders, another banker said.
    The Go First bankruptcy filing lists Central Bank of India
 CBI.NS , Bank of Baroda  BOB.NS , IDBI Bank  IDBI.NS  and
Deutsche Bank  DBKGn.DE  among its creditors to whom the carrier
owes a total of 65.21 billion rupees ($784.60 million).
    Aircraft lessors of Go First are locked in a legal tussle
with the company after they were blocked from repossessing
planes due to a moratorium imposed by Indian courts.
    However, the government amended its insolvency law earlier
this month to exclude leased aircraft from assets that can be
frozen, to bring India's bankruptcy laws into line with a treaty
protecting the rights of foreign lessors.
    It is unclear whether the amended law would apply to Go
First since its insolvency proceedings are still underway.

($1 = 83.1120 Indian rupees)

 (Reporting by Siddhi Nayak in Mumbai, additional reporting by
Sarita Chaganti Singh in New Delhi; Editing by Devika Syamnath)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters
Messaging: Twitter: https://twitter.com/siddhiVnayak))