Go First Liquidation: Go First has a debt of about Rs 6,200 crore. Ajay Singh and Nishant Pitti had made an offer to buy it. But, due to the low price, the talks could not move forward.
Go First Liquidation: All the ways of return of Go First Airlines, which was shut down due to financial crisis, are now completely closed. The banks that lent money to the airline have voted to close down Go First Airlines. This airline was shut down in May last year. After this, the airline applied for bankruptcy process. Despite all the efforts, after not getting any good proposals to buy this airline, the banks have decided to put it in liquidation.
Ajay Singh and Nishant Pitti had withdrawn
Earlier this year, the possibilities of Go First Airlines being sold had become strong. Sharjah-based Sky One along with SpiceJet Airlines promoter Ajay Singh and EaseMyTrip CEO Nishant Pitti had expressed their desire to buy Go First. But, after some time, Nishant Pitti announced to go out of this deal and said that now his priorities have changed. After this, Ajay Singh also decided to back out of this deal.
Go First has a debt of about Rs 6200 crore
An official of a private bank told Business Standard that voting has been done on the proposal to liquidate Go First. The airline’s committee of creditors (COC) has decided to close down the company. The bids received to buy the airline were much lower than their expectations. Go First has a debt of about Rs 6200 crore. Out of this, Central Bank of India owes Rs 1,934 crore, Bank of Baroda owes Rs 1,744 crore and IDBI Bank owes Rs 75 crore.
Further action will be taken on the instructions of NCLT
He said that further steps will be taken on the instructions of the National Company Law Tribunal (NCLT). Earlier, NCLT had extended the bankruptcy process of the debt-ridden airline till August 3. It had directed the CoC and the resolution professional to strictly adhere to these deadlines. The NCLT had already granted them extensions several times. Go First had filed for bankruptcy in May last year. Earlier, on April 26, the Delhi High Court had directed the DGCA to cancel the registration of aircraft leased to Go First.
