Debt-laden GoFirst Airline is being sold, Jindal Power has expressed interest in buying it.

Go to First Airlines: GoFirst, the airline that has been defunct for months, is being sold and Jindal Power Limited appears to be the frontrunner to buy it. Grounded airline GoFirst has received an Expression of Interest (EOI) from Jindal Power Limited, a report said on Thursday. EOI is the first step in buying any company.

Bidding process will be initiated after EOI. No one can bid without filing EOI. A banker at a PSU bank that invested in GoFirst told Reuters that Jindal Power was the only successful applicant whose EOI was accepted by banks.

Two more companies had applied.

According to a Reuters report, the power generation company may submit a formal bid soon. Last date for submission of EOI was 28 September. Apart from Jindal, two more foreign entities had submitted EoIs, but their applications were rejected as they did not meet the criteria set by the lenders. A meeting of creditors was then held to review the applications.

Which banks lend on GoFirst?

GoFirst has huge debt from Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank. The debt of these banks on the airline is Rs 6,521 crore. In such a situation, banks are preparing to get this loan by auctioning this airline.

The flight is closed from May 3.

Notably, GoFirst stopped flying on May 3 due to financial difficulties and engine problems and is undergoing bankruptcy resolution process. A decision on the bankruptcy resolution process may come soon.

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