By Siddhi Nayak
MUMBAI (Reuters) -Lenders to India’s Go First will meet this week to discuss options for the bankrupt airline, including liquidation, after a court order allowed lessors to take back their planes, two bankers with Go First’s creditors said on Tuesday.
“There is no value left in the airline after the court order and chances of revival seem very grim,” one of the bankers said.
Go First’s resolution professional did not immediately respond to a Reuters’ email seeking comment.
The airline owes a total of 65.21 billion rupees ($780.88 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.
The Committee of Creditors (CoC) met on Monday and another meeting is scheduled for Thursday, both sources said.
The two bankers did not wish to be identified because they are not authorised to speak with the media.
Go First has received two bids under the formal bankruptcy process – one from a consortium which includes budget carrier SpiceJet’s managing director Ajay Singh and Busy Bee Airways, and the second from Sharjah-based Sky One, Reuters previously reported.
Sky One’s Chairman Jaideep Mirchandani said that despite the deregistration of leased planes, the company was prepared to bring in their own assets and resources to revive the airline, if its bid was successful.
“Our extensive experience as lessors and our comprehensive portfolio of aviation services uniquely position us to address the challenges and opportunities presented by Go First’s situation,” Mirchandani said in an emailed response to Reuters.
Ajay Singh and Busy Bee’s majority shareholder Nishant Pitti did not respond to emails seeking comment.
Lenders may still choose to reject the bids on the table as they are not happy with the sums offered currently by both applicants, the second banker said.
The bids include the value of a piece of land offered as collateral by the airline’s promoters, the banker said.
Reuters had earlier reported that lenders had sought higher bids.
While liquidation seems to be the most viable option under the present circumstances, it will be put to a vote once the committee formally rejects the two offers or if the applicants back out, both the bankers said.
($1 = 83.5080 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Sonali Paul and Emelia Sithole-Matarise)
