Wadias to exit Go First, show no interest in bidding for grounded airline

Go First Airlines former owners, Wadia Group, have no interest in making a bid for the airline amid legal disputes and insolvencies. According to reports, only two candidates have shown expressions of interest (EoIs) in buying the airlines. They are Naveen Jindal’s power generation company, Jindal Power, and Jettwings Airways.

Go First filed for bankruptcy in May 2023 after being grounded due to faulty Pratt & Whitney engines.

A company takes the first step by submitting an EoI in order to make a financial bid. So far, the Wadia Group has not provided any EoI for the sinking airline.

However, the Wadia Group will be provided multiple opportunities to join the race in the later stages, according to the law, but the likelihood of this manifesting remains bleak.

Go First received its first EoI from Jindal Power on Wednesday, 11 October. There are growing concerns among creditors about finding a qualified investor.

In the Go First bankruptcy filing, the company has identified the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank as its creditors, with a collective outstanding debt of Rs.6,521 crore.

The Wadia Group initially showed interest, but it has completely waned due to significant changes on the ground.

Go First is currently entangled in a dispute with foreign aircraft lessors who are facing restrictions on repossessing their planes due to a court-imposed moratorium.

Earlier this month, the government made amendments to its insolvency law, specifically excluding leased aircraft from assets subject to freezing. It remains uncertain whether these amendments will be applied retroactively to Go First.