Go Airlines (India) Ltd, the operator of the Go First carrier, is seeking potential investors through a court-appointed administrator, as part of its ongoing insolvency proceedings, according to a recent newspaper advertisement.
What does it mean? The call for an Expression of Interest (EoI) marks the formal start of the search for buyers or investors, following the procedure required under Indian law.
Go Airlines, which filed for bankruptcy protection in May, blamed “faulty” Pratt & Whitney engines for grounding about half of its 54 Airbus A320neos. The engine manufacturer dismissed these claims as baseless.
According to the bankruptcy filing, the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the creditors of Go First. The total outstanding amount owed to these creditors stands at ₹6,521 crore.
Abhirup Dasgupta, a partner at HSA Advocates, not involved in Go First’s proceedings, told Reuters that the publication of the Form G – related to the EoI invitation – is the “prescribed next step” to advance the insolvency process. He noted that the final resolution would still be dependent on the rights of the lessors becoming clear.
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The troubled carrier last month delayed restarting operations several times, cancelling several flights and issuing refunds to customers.
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