MUMBAI: Go First’s lenders will vote on a proposal to liquidate the insolvent Indian airline, two banking sources said on Thursday, days after a deadline to bid for the company ended with no suitors. “The proposal whether or not to liquidate the airline has been floated and individual lenders will take the proposal to their boards and submit final votes in 10-15 days,” said a banker with a state-run bank that has exposure to Go First.
“It appears that there is no interest from suitors for the airline and bankers are inclined to opt for liquidation rather than restarting the insolvency process.” The committee of creditors met on Wednesday and Thursday to decide the future course of action for the airline. Go First’s resolution professional, who is conducting the insolvency process, did not immediately reply to an email seeking comment.
Jindal Power, sole company, whose expression of interest to take over Go First was accepted by creditors, also decided to not follow through with a bid. “Liquidation is only viable option before banks as legal troubles are deterring suitors,” said the second banker. “Since there is (land) collateral backing loan, it is better to opt for liquidation rather than spending more money on insolvency.” agencies
