India airline Go First's lenders seek investor bids by Jan 31 -sources

IDBI Bank

14/01/2024 12:03

By Siddhi Nayak
       MUMBAI, Jan 14 (Reuters) - Lenders to India's Go First
have set Jan. 31 as the deadline for financial bids to acquire
the airline, two banking sources said on Sunday.
    Go First filed for bankruptcy protection in May but lenders
have more recently been considering liquidating the airline
after failing to secure new investors.
    "Banks have decided to give the resolution process another
go and allow those suitors who have shown prior interest a
chance to submit a concrete bid," said a banker with a state-run
bank that has exposure to Go First.
    Indian carrier SpiceJet  SPJT.NS  said last month that it
was considering an offer for Go First after conducting due
diligence.
    Sharjah, UAE-based Sky One, Africa-focused Safrik
Investments and U.S.-based NS Aviation have also shown interest
in Go First, the two sources said.
    Sky One, Safrik Investments and NS Aviation did not
immediately respond to requests for comment.
    The second banker said the Committee of Creditors could also
consider extending the month-end deadline at the request of a
potential suitor. 
    Neither of the sources wished to be identified as they are 
not authorised to speak to the media. 
    Go First's resolution professional, who conducts the
insolvency process, did not immediately respond to a request for
comment.
    Go First's bankruptcy filing lists Central Bank of India
 CBI.NS , Bank of Baroda  BOB.NS , IDBI Bank  IDBI.NS  and
Deutsche Bank  DBKGn.DE  among creditors to which the carrier
owes a total of 65.21 billion rupees ($784.38 million).
($1 = 83.1360 Indian rupees)

 (Reporting by Siddhi Nayak; Editing by Kirsten Donovan)
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