Bid intensifies for Go First as SpiceJet-backed offer gets sweetened.
The race to acquire debt-laden Go First has received a shot in the arm, with one of the bidders substantially upping the ante. Sources with knowledge of the matter told Reuters that the joint offer from SpiceJet chairman Ajay Singh and Busy Bee Airways has been enhanced by Rs 100-150 crore. Their original bid stood at Rs 1,600 crore for the bankrupt airline.
Go First, which filed for insolvency protection last year under IBC, received two financial bids. However, lenders deemed both offers inadequate to address the significant haircuts being provisioned.
This prompted requests to sweeten quotes, per a state-run bank with Go First exposure. The Navi Mumbai-headquartered carrier owes over Rs 6,500 crore to creditors like the Central Bank of India and Deutsche Bank.
A banker said the augmented bid will be presented to lenders in a Committee of Creditors meeting scheduled early next week. A response from financial institutions is expected by March 28.
Meanwhile, Gulf-based Sky One Airways is the other suitor in the race. With the bidding process moving to a decisive phase, revival prospects appear brighter for the loss-making airline under new ownership and funding.
