The resolution professional handling the insolvency of Go First (G8, Mumbai International) has called for expressions of interest (EOI) to buy the airline. In an advertisement in Indian business newspapers on July 10, Shailendra Ajmera of Ernst & Young's New Delhi office has begun the first in a series of Indian insolvency law-mandated steps to sell the airline.
However, the advertisement is light on specifics, saying that Go First has assets located at various airports around India, employs around 4,200 people, and that its revenue in the 12 months to March 31, 2022, was INR41.83 billion rupees (USD506.2 million). The closing date for EOIs is August 9, 2023, with a short list of successful applicants released on August 19. The Hindu BusinessLine reports that the Wadia Group, which currently owns Go First, may bid for the airline. ch-aviation has contacted Ajmera's office for further details.
Go First suspended services in early May, filing for voluntary administration soon after, with the airline owing creditors approximately INR65 billion (USD786.6 million). In the 2021/22 fiscal year, Go First recorded a loss of INR10.08 billion (USD218.8 million) on revenues of INR41.84 billion (USD506.3 million) and had a negative net worth of INR32.22 billion (USD 390 million).
Notably, almost all of Go First's 54 aircraft are leased, with several lessors agitating for the return of their planes. Data from the ch-aviation fleets advanced module shows at least 52 of the 54 planes are leased from 12 different lessors. India's National Company Law Tribunal (NCLT) has stopped lessors from retrieving their aircraft. An appeal by aircraft owners to the appellate tribunal was unsuccessful, although India's High Court granted certain of them access to their aircraft for maintenance and inspection purposes last week. Since then, Ajmera, on behalf of Go First, has filed an appeal to that High Court order.
10/07/2023 ch-aviation
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