Insolvent low-cost carrier Go First is facing liquidation after Jindal Power Ltd decided not to bid for the airline, currently in India’s corporate insolvency resolution process. Jindal participated in the process earlier but chose not to proceed with purchasing the airline due to evaluation results.
The airline’s prospective buyers had until November 21 to submit their bids, and Go First had stopped operations in May. The creditors, including banks, lessors, and employees, have claimed a total of INR65.21bn rupees (USD782m).
Jindal was the only bidder deemed suitable by the creditors’ committee, and if the committee opts for liquidation, Go First’s primary remaining asset is a 94-acre land parcel in Thane valued at around INR30bn (USD360m).
The airline’s aircraft were all leased and two of Go First’s fleet of eight A320 aircraft were leased by SMBC.
To extend the bankruptcy resolution timeline, Go First’s resolution professional appealed to the national company law tribunal, and it was granted a 90-day extension until February 4, 2024.
