Go First case: Former bidder Busy Bee Airways withdraws plea against liquidation

During a hearing in the NCLT on Tuesday, the company expressed its interest to submit a resolution plan to acquire the grounded carrier. The bidder also filed a plea requesting the tribunal to direct the resolution professional (RP) and the committee of creditors (CoC) to halt any liquidation-related actions.

Since the NCLT had already passed its liquidation order for Go First on 20 January, the bidder withdrew its plea, stating it would explore other options for relief.

In its plea, Busy Bee Airways also sought updated and comprehensive details about Go First, as requested in emails dated 6 May 2024, 27 May 2024, 1 June 2021, and 2 July 2021.

The bidder now has the option to move the National Company Law Appellate Tribunal (NCLAT), challenging the liquidation order.

Busy Bee Airways, majority-owned by Nishant Pitti and linked to SpiceJet chairman and managing director Ajay Singh, had previously expressed interest in acquiring the insolvent airline but withdrew its bid after Go First was left without any operational aircraft.

The company was incorporated on 19 April 2017 in Delhi with a paid-up capital of ₹1 lakh, according to data from the Ministry of Corporate Affairs.

Also read: Go First's airport slots may be up for grabs for rivals soon

Media reports suggest that the consortium of Ajay Singh and Nishant Pitti had reportedly offered a bid of approximately ₹1,800 crore for Go First, compared to an earlier offer of ₹1,600 crore. The group had also raised its upfront payment proposal to ₹500 crore from ₹290 crore, along with plans to use proceeds from an arbitration case against engine manufacturer Pratt & Whitney to settle debts owed to financial creditors.

This bid was submitted in their personal capacities, while another bid was made by Jaideep Mirchandani-owned Sky One Airways.

However, the latter bid was reportedly withdrawn after the Delhi high court ruling on 26 April, which allowed lessors to repossess all 54 Go First aircraft on lease, leaving the airline without planes and rendering it an unviable asset.

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The airline owes a total of ₹6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank. Central Bank of India holds the largest exposure at ₹1,987 crore, followed by Bank of Baroda with ₹1,430 crore, Deutsche Bank at ₹1,320 crore, and IDBI Bank with ₹58 crore.

Go First, promoted by the Wadias, filed for voluntary insolvency before the NCLT in May 2023. The struggling airline attributed its decision to issues with Pratt & Whitney, claiming that the rising frequency of engine failures caused by the US-based firm’s International Aero Engines left it with no choice but to seek insolvency protection.