The voting, which was slated to end on Saturday, has been extended till the end of this week.
“Among the creditors, a large public sector bank which is a key creditor wants more time since the approval to extend the process needs to be ratified by its board. So voting lines are still open for everyone, though some of the creditors have already voted,” said a person aware of the process.
RP Shailendra Ajmera had called for the voting after receiving unsolicited interest from the three entities last month for conducting due diligence on the grounded airline.
Sharjah-based aviation company Sky One, Africa-focused Safrik Investments and homegrown budget airline SpiceJet had shown interest in acquiring Go First after the deadline for making proposals passed, ET reported on December 18.
“Lenders are inclined to restart the process and give these new bidders time to put up a concrete plan since there is enough time for that according to law. So, we may see fresh bids to take over the airline though no one is enthusiastic about the valuations since this airline has now been grounded since May last year,” a second person said.
Go First owes creditors more than ₹6,200 crore. Central Bank of India, Bank of Baroda and IDBI are the secured creditors with ₹1,934 crore, ₹1,744 crore and ₹75 crore of admitted claims, respectively. Together, the airline owes these lenders ₹3,753 crore and any extension of the deadline needs to be approved by these lenders.
The RP can extend the corporate insolvency resolution process (CIRP) by another 60 days and still comply with the insolvency code’s outer deadline of 330 days. The current timeline ends on February 4. Ajmera did not respond to an email seeking comment.
“From the lender’s perspective, there is no harm in extending the timeline. Though judging by the bids received in the last process and the financial position of the new bidders, not many expectations are there,” said a third person aware of the process.
Jindal Steel and Power promoter Naveen Jindal’s expression of interest (EoI), the only preliminary inquiry to make the cut as a bidder for the airline, did not finally submit a bid in the last round.
Lenders are also wary of the limited information about the two foreign entities and the financial position of SpiceJet, which is facing its own challenges.
They expect a better recovery from Go First’s ongoing arbitration proceedings in Singapore against US engine maker Pratt & Whitney (P&W), than selling it. Lenders have continued the arbitration started by Go First’s erstwhile management, seeking more than $1 billion from P&W, blaming it for supplying faulty engines that were not replaced on time, resulting in the grounding of half the airline’s fleet and pushing it towards bankruptcy.
