Go First Airlines: SpiceJet's CMD Ajay Singh and Busy Bee Airways consortium on Friday unveiled the Rs 1,600 crore rescue plan in a bid to take over the embattled Go First airlines. The consortium has tabled a proposal that involves the acquisition of Go First for Rs 1,000 crore, backed by collateral and a corporate guarantee.
Besides, Singh and EaseMyTrip CEO Nishant Pitti have proposed to infuse an additional Rs 600 crore into Go First, specifically for restarting the airline's operations.
Lenders now may ask bidders in the resolution process for the airline to improve their offers in order to maximise recoveries, The Economic Times reported on Saturday. The lenders may opt for liquidation if the bids aren’t good enough, sources quoted in the report said.
The two bids for the airline were opened Friday and resolution professional (RP) Shailendra Ajmera will check if they are compliant with the Insolvency and Bankruptcy Code (IBC). Central Bank of India and Bank of Baroda are the main lenders to the grounded carrier. Go First owes banks around Rs 6,521 crore, of which Rs 1,300 has been drawn under the government’s emergency credit line guarantee scheme (ECLGS). The total dues of the carrier after adding up the claims of vendors and lessors goes up to around Rs 11,463 crore.
The RP has admitted claims of Rs 7,040 crore, of which Rs 4,257 crore is from financial creditors led by Central Bank of India.