Indian airline Go First's bidder ups bid following banks' nudge, say sources

IDBI Bank

19/03/2024 06:05

By Siddhi Nayak
       MUMBAI, March 19 (Reuters) - One of the two bidders for
bankrupt Indian airline Go First has raised its offer following
a nudge from lenders, two banking sources and a person aware of
the development said on Tuesday.
    The consortium, which includes budget carrier SpiceJet's
 SPJT.BO  managing director Ajay Singh and Busy Bee Airways,
increased the bid amount between 1 billion rupees ($12.06
million) and 1.5 billion rupees, one of the sources said. The
original bid amount stood at 16 billion rupees.
    The sources did not wish to be identified as they were not
authorised to speak to the media.
    Emails seeking comments from Reuters to Go First's
resolution professional, who conducts the bankruptcy process,
Singh, Spicejet and Busy Bee majority shareholder Nishant Pitti
did not immediately get a response.
    Pitti is the CEO of online travel platform EaseMyTrip
 EASM.NS .
    Go First, which filed for bankruptcy in May last year,
received two financial bids as part of its bankruptcy process,
the second being Sharjah-based Sky One Airways, Reuters had
reported.
    "The bid amount in both the offers was far below the
expectations of the Committee of Creditors (CoC) and would
involve a deep haircut, which is why both the bidders were asked
to revise their offer upwards," a banker with a state-run bank
that has exposure to Go First said.
    Its 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 it owes a total of 65.21
billion rupees.
    The CoC, through the resolution professional, are in talks
with Sky One, the banker added. Sky One Airways did not
immediately respond to a request for comment.
    Singh and Busy Bee's joint bid will be discussed in the next
CoC meeting that is likely to be held early next week, the
second banker said. 
    Lenders are expected to revert to the bidders by March 28,
this banker added.
            
($1 = 82.9350 Indian rupees)

 (Reporting by Siddhi Nayak; Editing by Janane Venkatraman
)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters
Messaging: Twitter: https://twitter.com/siddhiVnayak))