SpiceJet and More: The Race to Acquire Go First Takes an Unexpected Turn

In a surprising turn of events, SpiceJet, alongside Safrik Investments and Sky One, has expressed interest in acquiring the beleaguered carrier Go First. The committee of creditors faces crucial decisions as the deadline extension request for due diligence is on the table. Let's explore the dynamics of this unexpected twist in the aviation saga.

The Acquisition Landscape: SpiceJet and Beyond

SpiceJet, Safrik Investments, and Sky One have emerged as potential saviors for Go First, the homegrown budget airline facing corporate insolvency. The recent expressions of interest come after the lenders contemplated the possibility of liquidation due to the absence of bids before the initial deadline.

Deadline Dilemma: Seeking an Extension

The resolution professional, Shailendra Ajmera, managing Go First's corporate insolvency resolution process, received due diligence requests from the three entities within the past 10 days. All three contenders are reportedly seeking an extension of the deadline, a decision that now rests in the hands of the committee of creditors.

Liquidation Looming: The Stakes at Play

As the lenders previously considered the dire option of liquidation, the unexpected interest from SpiceJet, Safrik Investments, and Sky One injects a new dimension into the fate of Go First. The committee of creditors, tasked with deciding on the extension, plays a pivotal role in determining whether acquisition talks can proceed.

Jindal's Retreat: A Bidder's Withdrawal

Despite initial interest from Naveen Jindal's Jindal Steel and Power, the only preliminary inquiry failed to translate into a final bid. Jindal neither submitted a bid nor requested an extension, leaving the landscape open for new contenders.

NCLT's Intervention: Extending the Resolution Process

In parallel developments, the National Company Law Tribunal (NCLT) has extended Go First's corporate insolvency resolution process by 90 days until February 4, 2024. This move follows the lapse of the six-month moratorium period on November 6. The NCLT's directive requires Go First to submit a comprehensive action plan within this period, emphasizing the critical nature of the resolution process.

Pratt & Whitney's Shadow: The Legal Battle Unfolding

Meanwhile, Go First is entangled in a legal battle with Pratt & Whitney (P&W), seeking more than $1 billion in arbitration proceedings in Singapore. Go First alleges that faulty engines, supplied by P&W and not replaced promptly, forced them to ground half of their fleet, ultimately pushing the airline towards bankruptcy.