Naveen Jindal, the promoter of Jindal Power, has officially expressed interest in acquiring the beleaguered Go First airline. This development, reported by the Economic Times (ET), marks a significant move in the aviation industry. Go First, previously known as GoAir, is owned by the Wadia family and holds the distinction of being India’s first commercial airline to voluntarily seek bankruptcy protection.
Jindal Power’s Expression of Interest (EoI)
Jindal Power, an unlisted entity under Worldone Pvt Ltd, a closely-held firm owned by Naveen Jindal, has submitted an Expression of Interest (EoI) for Go First. However, the report does not provide clear information on whether Jindal Power aims to acquire the airline outright or is considering a strategic investment in Go First.
Bidders Falling Short of Eligibility Criteria
In the competitive bidding process for Go First, two other bidders expressed interest but failed to meet the eligibility criteria set by the creditors. Consequently, their bids were not considered for further evaluation. This underscores the stringent requirements set out by the creditors in the acquisition process for Go First.
Go First’s Financial Challenges
Go First, which ceased its operations on May 3, is currently grappling with substantial claims amounting to $2.9 billion from both operational and financial creditors. The airline’s financial woes have prompted it to seek bankruptcy protection, a move that has captured the attention of the aviation industry and the financial sector.
Government and Regulators’ Swift Action
In response to Go First’s financial challenges, government authorities, the legal ecosystem, and regulators are swiftly addressing the legal aspects required to salvage the airline. An unnamed official, close to the matter, emphasized the urgency with which they are working to ensure the airline’s survival.
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