Race For Go First: SpiceJet's Ajay Singh, Sky One, and Busy Bee Eye Airline Acquisition

race for go first: spicejet’s ajay singh, sky one, and busy bee eye airline acquisition

Go First news today: SpiceJet promoter Ajay Singh, Sharjah’s Sky One, and the lesser-known Busy Bee have submitted a Rs 5-crore bank guarantee and an official expression of interest (EoI) for the acquisition of the beleaguered Go First Airlines, Economic Times reported citing sources close to the matter. This move propels these entities into the next phase of the process, where they will conduct thorough due diligence on the airline. Additionally, lenders are considering extending the deadline for the resolution process by an extra two months, pushing it beyond the initial February 4 cut-off.

Ajay Singh has participated in his individual capacity rather than through SpiceJet. Busy Bee, a new player in the field, has tied up with Plan IT, a previous applicant that missed out in the initial bid in October due to not meeting the Rs 500 crore net worth criteria.

However, Africa-based Safrik Investments and the US-based NS Aviation, who had previously shown interest, did not follow through with the necessary guarantees. “All these three entities will now be given access to more information and data on Go First to enable them to make a formal plan,” a source told Economic Times.

Shailendra Ajmera, the resolution professional (RP), is poised to call for a new round of creditor voting as early as Thursday. This move seeks to extend the resolution timeline by another 60 days, potentially lengthening the corporate insolvency resolution process (CIRP) to 330 days. Efforts to contact Ajmera for comments were unsuccessful.

Go First’s debt to creditors exceeds Rs 6,200 crore, with Central Bank of India, Bank of Baroda, and IDBI being the primary secured creditors. Following a disappointing initial round in October, where Jindal Steel and Power’s promoter Naveen Jindal’s EoI failed to materialise into a final bid, lenders are once again optimistic about receiving formal bids.

Lenders are continuing arbitration proceedings in Singapore against engine manufacturer Pratt & Whitney (P&W). This process, initiated by Go First’s previous management, seeks over $1 billion in compensation from the US-based company. The airline accuses P&W of supplying faulty engines and not replacing them promptly, which led to the grounding of a significant portion of its fleet and contributed to its financial struggles.