‘No value left in the airline’, say Go First bankers; lenders to discuss future course of action

Go First crisis: Go First lenders, who met on Monday, are planning to meet again on Thursday, to discuss the future course of action in terms of the beleaguered airline. Liquidation is one of the options that’s on the table for discussion after a court order allowed lessors to take back their planes, according to two bankers with Go First’s creditors.

According to a report in news agency Reuters, one of the bankers said, “"There is no value left in the airline after the court order and chances of revival seem very grim.” 

Go First owes a total of $780.88 million to its creditors that include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

So far, Go First has received two bids under the formal bankruptcy process including Sharjah-based Sky One, and from a consortium which includes budget carrier SpiceJet's managing director Ajay Singh and Busy Bee Airways. 

Sky One Chairman Jaideep Mirchandani said on Friday that the deregistration of aircraft does not alter its plans for the Indian aviation industry. "If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors," said Mirchandani.

However, the lenders might still decide to reject the bids if they are not happy with the sums offered by the applicants, as per one of the bankers. 

The bankers told the news agency that liquidation seems to be the most viable option under the present circumstances but it will be put to vote only once the Committee of Creditors rejects the two offers or if the applicants back out.