Go First Creditors Get Last-Minute Interest From Two Overseas Bidders, SpiceJet

Beleaguered carrier Go First has received fresh interest from bidders, right before it was going into liquidation, according to two people in the know.

Africa-based Safrik and Sharjah-headquartered aviation firm Sky One have submitted a joint expression of interest for Go First under the insolvency proceedings, the people quoted above said on the condition of anonymity as details are not public. Separately, SpiceJet Ltd. has also showed interest in the airline, they said.

While Sky One, which describes itself as an "aviation expert", offers a range of services including cargo charters, asset trading, crew training, operations, and maintenance. Safrik invests in large-scale infrastructure, technological innovations and finances mergers and acquisition in Africa, the Middle East and the Americas.

SpiceJet recently approved Rs 2,250 crore worth fund-raising through preferential allotment of equity shares and convertible warrants. The company reported a net loss of Rs 431 crore in the September quarter, lower than Rs 838 crore worth of loss reported a year earlier. The airline is under financial stress and has deferred payments to lessors and other vendors.

Queries emailed to resolution professional Shailendra Ajmera, Safrik, Sky One and SpiceJet did not yield any responses.

Last month, financial creditors at Go First closed the bidding process owing to a lack of eligible bidders for the airline. The Jindal Group, which had shown interest initially, backed out of the bidding process. According to the first of the two people quoted above, the process was headed toward liquidation before the fresh interest arrived.

Creditors led by Central Bank of India and Bank of Baroda will convene to take a call on next steps, the people quoted above said. Financial creditors have claims worth Rs 4,254 crore against Go First, according to last available data.

Insolvency proceedings against Go First were initiated in June.

Separately, the creditors have to also decide on approaching international funds for litigation financing. According to the first person quoted above, if the airline were to go into liquidation, the creditors will need to seek external financing to continue litigation against engine maker Pratt & Whitney.

NDTV Profit had previously reported that they have a strong case against Pratt & Whitney as the airline's bankruptcy is directly linked to the lack of supply of engines, the first person said.