Sky One, SpiceJet express interest in acquiring troubled airline Go First amid liquidation concerns
Sky One, an aviation company headquartered in Sharjah, and SpiceJet have shown interest in acquiring the financially troubled airline Go First.
This unexpected development comes weeks after a proposal deadline had passed and while lenders were contemplating the possibility of liquidation.
“Sky One is interested in the ongoing acquisition but it is too premature to comment on any details,” the airline replied to IANS in an email.
The entities had approached Shailendra Ajmera, the resolution professional overseeing Go First’s corporate insolvency resolution process (CIRP), seeking permission for due diligence on the grounded airline.
The sources familiar with the development said that the entities had also requested a deadline extension.
A decision on the extension is pending, awaiting discussion in the creditors’ committee meeting.
Considering no bids were received by the November 22 deadline, lenders are contemplating the possibility of liquidation for the airline, according to reports.
“Please note that SpiceJet Limited (the ‘Company’ or ‘SpiceJet’) has expressed interest with the Resolution Professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet. The Board of the Company has recently approved and initiated the process of raising fresh capital of about $270 million to strengthen its financial position and provide resources to invest in growth plans,” SpiceJet said in a BSE filing on Tuesday.
On December 12, the Board of Directors of SpiceJet had approved the raising of fresh capital of over Rs 2,250 crore through the issuance of equity shares to financial institutions, FII’s, HNI’s and private investors aimed at fortifying the airline’s financial strength and accelerating its growth trajectory.
Recently, Ajmera had submitted an affidavit in the Delhi High Court stating that 2,278 employees remain on the rolls of Go First, out of which none are at present reporting to work.
“Various personnel of the engineering and records team who were required to undertake maintenance activities have either gradually resigned or are not reporting to work due to non-payment of salaries,” read the affidavit by Ajmera.
“As on insolvency commencement date the number of employees on the rolls of the Corporate Debtor stood at approx .. 4,621. However, as of 10.10.2023, approx ..2,278 employees remain on the rolls of the xompany, out of which none are at present reporting to work,” it said.
The affidavit came after the lessor filed a contempt petition, alleging that Ajmera did not permit them to inspect the aircraft and did not maintain them as per court directions.