Go First's lenders set January 31 as deadline for investor bids, claims report

Lenders of Go First have set January 31 as the deadline for financial bids to acquire the airline, according to a Reuters report. 

Cash-strapped Go First on May 2 said it was filing for voluntary insolvency proceedings with the National Company Law Tribunal (NCLT), blaming engine manufacturer Pratt & Whitney (P&W) for its financial crisis. The airline said that it was “forced to apply to the NCLT” after “the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines” led to the grounding of 25 aircraft, or half its fleet of Airbus A320neo planes. 

Go First cancelled all its flights starting May 3 and has not resumed operations yet.

Lenders have more recently been considering liquidating the airline after failing to secure new investors. "Banks have decided to give the resolution process another go and allow those suitors who have shown prior interest a chance to submit a concrete bid," a banker with a state-run bank that has exposure to Go First told Reuters.

SpiceJet said last month that it was considering an offer for Go First after conducting due diligence. Sharjah, UAE-based Sky One, Africa-focused Safrik Investments and U.S.-based NS Aviation have reportedly also shown interest in Go First.

Go First's bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among creditors to which the carrier owes a total of $784.38 million