Go First acquisition: NCLAT asks Busy Bee Airways to negotiate deal with lenders
- The appellate tribunal also asked the liquidator to submit the minutes of the Committee of Creditors (CoC) meeting that led to the decision to liquidate the airline, and scheduled the next hearing for 10 February.
The National Company Law Appellate Tribunal (NCLAT) has asked Busy Bee Airways, a bidder for bankrupt airline Go First, to approach the airline’s lenders and negotiate a deal to acquire the airline as a going concern.
This came after Busy Bee Airways told the NCLAT it could still acquire Go First, noting that the airline retained valuable assets, including its license from the Directorate General of Civil Aviation (DGCA), making it viable for purchase.
The appellate tribunal also instructed the liquidator to submit the minutes of the Committee of Creditors (CoC) meeting that led to the decision to liquidate the airline. NCLAT has scheduled the next hearing for 10 February.
Busy Bee Airways, backed by EaseMyTrip’s Nishant Pitti, had challenged a liquidation order issued by the National Company Law Tribunal (NCLT) in the NCLAT on 20 January. The NCLT’s decision came after Go First’s creditors unanimously voted for liquidation, citing the airline's lack of assets and a viable recovery plan. Busy Bee Airways argued that the NCLT’s liquidation order was passed before its plea to challenge it was heard, prompting the move to NCLAT.
Trade union also challenges liquidation
The Bhartiya Kamgar Sena Mumbai trade union also approached NCLAT to challenge the liquidation. It argued that 5,000 workers would be left without support if Go First was liquidated, urging lenders to keep the airline as a going concern until arbitration with Pratt & Whitney concluded at the Singapore International Arbitration Centre (SIAC).
Majority-owned by Nishant Pitti and linked to SpiceJet chairman Ajay Singh, Busy Bee Airways had initially expressed interest in acquiring Go First but withdrew its bid when the airline was left without operational aircraft. However, the company has now re-entered the bidding process, adding another twist to Go First’s insolvency saga.
Founded in Delhi on 19 April 2017, with a paid-up capital of ₹1 lakh, Busy Bee Airways had previously proposed a bid of ₹1,800 crore, up from ₹1,600 crore, for Go First. The consortium of Pitti and Singh also increased their upfront payment offer from ₹290 crore to ₹500 crore.
Another bid came from Jaideep Mirchandani-owned Sky One Airways, but it was withdrawn after a Delhi High Court ruling on April 26 allowed lessors to repossess all 54 Go First aircraft on lease, leaving the airline without planes and rendering it an unviable asset.
Go First owes ₹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 at ₹1,430 crore, Deutsche Bank at ₹1,320 crore, and IDBI Bank at ₹58 crore.
The airline, promoted by the Wadias, filed for voluntary insolvency before the NCLT in May 2023, citing engine failures caused by US-based Pratt & Whitney's International Aero Engines, which severely disrupted its operations.
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First Published:31 Jan 2025, 01:44 PM IST
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