SpiceJet promoter Ajay Singh, along with Busy Bee Airways Private Limited, has launched a personal proposal to acquire the bankrupt airline GoFirst, according to an ANI report. SpiceJet has stated that it will be the new airline's operating partner, supplying staff and services.
SpiceJet earlier filed a regulatory filing on December 19 to express an interest in acquiring GoFirst. The company has announced plans to begin the process of raising roughly $270 million in new capital to strengthen its financial condition and support future expansion aspirations.
Apart from SpiceJet, other organizations interested in acquiring GoFirst included Sharjah-based Sky One, Africa-focused Safrik Investments, and US-based NS Aviation. However, SpiceJet was regarded as a viable contender because it had more expertise handling passenger flights than the other carriers.
Earlier this year, GoFirst's lenders, Bank of Baroda, Central Bank of India, and IDBI Bank, decided to start liquidating the airline after failing to find new investors. The airline owes creditors a total of Rs 65.21 billion ($784.38 million), including the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.
However, on Tuesday, the National Company Law Tribunal (NCLT) extended GoFirst's insolvency procedure by 60 days after the resolution professional's (RP) discovery of three companies interested in taking over the carrier. However, some lessors opposed the extension.
The three interested parties, including SpiceJet's promoter, are scheduled to present resolution plans for the airline's rebirth by February 15. On May 2, 2023, GoFirst began voluntary insolvency proceedings under Section 10 of the IBC, and the NCLT admitted its plea on May 10.
SpiceJet has suffered financial issues, including an arbitration award to former promoter Kalanithi Maran and KAL Airways in a 2018 ruling. The airline previously indicated that it was struggling to stay financially solvent after being required to make this payment.
SpiceJet has 118 planes, 16,000 employees, and a domestic market share of 16.3% in October 2019. The airline operated 516 daily flights to 51 domestic and nine overseas destinations.
