2025-01-21 07:17:50 :
In an unexpected turn of events in the Go First bankruptcy case, the airline’s former bidder, Busy Bee Airways Private Limited, has approached the National Company Law Tribunal (NCLT).
The plea challenges the NCLT’s decision to stay its order in the December 18 liquidation plea.
However, the NCLT had issued a liquidation order against Go First on Monday, January 20, while Busy Bee Airways’ plea was listed for hearing on Tuesday.
Busy Bee Airways, majority-owned by Nishant Pitti and linked to SpiceJet chairman and managing director Ajay Singh, had previously expressed interest in acquiring the bankrupt airline but withdrew its offer after Go First did not have any operational aircraft .
The company was incorporated in Delhi on April 19, 2017 with a paid-up capital of $1 lakh according to the Ministry of Corporate Affairs.
Also read: Go First’s airport seats may soon be up for grabs by rivals
Media reports claim that a consortium of Ajay Singh and Nishant Pitti recently raised Go First’s bid to approx. $1,800 crore compared to the previous offer of Rs. $16 billion rupees. The group also made advance payment proposals $500 Crores from $2.9 billion and plans to use proceeds from the arbitration case against engine maker Pratt & Whitney to clear debts owed to financial creditors.
The bid was submitted in an individual capacity, while the other bid was from Jaideep Mirchandani’s Sky One Airways.
However, the latter’s bid was reportedly withdrawn after the Delhi High Court’s April 26 ruling allowing the lessor to take back all 54 Go First leased aircraft, leaving the airline without an aircraft and a non-viable asset .
way forward
Since the NCLT has passed the winding up order, the tribunal is expected to direct Busy Bee Airways to withdraw its defence. This will give the company the option to challenge the winding up order before the National Company Law Appellate Tribunal (NCLAT).
Also read: Mint Explainer: Cape Town’s links with Jet Airways, Go First bankruptcy
The airline owes a total of $6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank and IDBI Bank. India’s central bank holds largest exposure $1,987 Crore followed by Bank of Baroda $1,430 Crore, Deutsche Bank $Rs 1,320 Crore, IDBI Bank $58 Crores.
Go First, promoted by Wadias, had filed for voluntary bankruptcy with NCLT in May 2023. The troubled airline blamed its decision on problems at Pratt & Whitney, claiming the U.S. company’s International Aircraft Engines was causing an increasing frequency of engine failures and it had no choice but to seek bankruptcy protection.
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