Go to the first resolution: Big news has come out regarding bankrupt budget airlines GoFirst. According to news agency Reuters, SpiceJet CMD Ajay Singh Gofirst has increased the bid to buy the airline, but it is far below the expectations of lenders, the banks that lend to airlines. Just a few days ago, GoFirst received two bids for its restoration.
How much did the bid increase?
SpiceJet Chairman and Managing Director CMD Ajay Singh has increased his bid by Rs 100 to Rs 150 crore to buy GoFirst, the country’s low-cost airline, along with Busybee Airlines. Earlier, the bid was Rs 1600 crore, but after the banks’ request, both have increased their bid from Rs 100 crore to Rs 150 crore. Among the major shareholders of Busy Bee Airlines is Nishant Patti, who is also the CEO of travel platform EaseMyTrip.
When did GoFirst go bankrupt?
In May 2023, GoFirst applied to the NCLT for the first time to initiate insolvency proceedings. Since then, the company has received a total of two financing bids under the bankruptcy process. One bid has been placed by SpiceJet CMD Ajay Singh and the other by Sharjah-based Sky One Airways. Notably, the bids made by both the bidders were much lower than the expectations of the banks, in which case the banks requested both the bidders to increase their bids.
There will be a meeting of banks.
In its bankruptcy filing, GoFirst has stated that it owes Rs 65 billion to banks such as Bank of Baroda, IDBI Bank, Central Bank of India and Deutsche Bank. According to the report of the news agency Reuters, the meeting of the banks which gave loans to GoFirst is going to be held next week. The meeting will discuss further increase in bid and joint bid offer of SpiceJet and BuzzyB.
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