SpiceJet promoter Ajay Singh ups bid for bankrupt Go First after nudge from bankers

Nudge from lenders seems to have worked for bankrupt airline, GoFirst, after SpiceJet MD Ajay Singh's consortium, one of the two bidders, raised its offer.  The consortium, which includes Busy Bee Airways, reportedly increased the bid amount between Rs 100-150 crore, according to Reuters. 

The original bid amount stood at Rs 1,600 crore. 

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.

"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 told the agency. 

Its bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank 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. Singh and Busy Bee's joint bid will be discussed in the next CoC meeting that is likely to be held early next week.
Lenders are expected to revert to the bidders by March 28, this banker added.