Two sources familiar with the development suggested that lenders of Go First, an insolvent Indian airline, will execute their right on a proposal to liquidate the airline. However, there is no official announcement regarding the same but the sources are confident that lenders will vote to liquidate Go First as no suitors seem to be interested in the company. Reportedly, the lenders of the insolvent Indian airline will vote to liquidate it after the deadline to bid for the airline ended with zero suitors. It has been a long time since the insolvent airline has been seeking suitors but no one seems to be interested in it. Therefore, it is likely to happen that lenders will vote on a proposal to liquidate the airline. In the following sections, we have given more details of this story. Stick with this page and go through the article till the end.
A banker with a state-owned bank that has exposure to the insolvent Indian airline said, “The proposal whether or not to liquidate the airline has been floated and individual lenders will take the proposal to their boards and submit final votes in 10-15 days. It appears that there is no interest from suitors for the airline and bankers are inclined to opt for liquidation rather than restarting the insolvency process.” Shift to the next section and read more details.
On Wednesday, November 23, and Thursday, November 24, the creditors’ committee will sit to decide the future course of action for the airline. However, no banker has come to the fore because they were not allowed to speak to the media. Insolvent India airline Go First’s resolution professional did not immediately reply to an email seeking comment. The airline which filed for bankruptcy protection in May this year, reportedly owes a total of Rs 65.21 billion or $785.6 million to its lenders. Shift to the next section and read who are the creditors of Go First.
Reportedly, the Bank of Baroda, IDBI Bank, Central Bank of India, and Deutsche Bank are among the creditors of the insolvent airline. The sole company whose expression of interest to take over Go First was accepted by creditors was Jindal Power also decided to not follow through with a bid. Another banker said, “Liquidation is the only viable option before banks as legal troubles are deterring suitors,” Stay tuned.