Go First Airlines (formerly known as Go Airlines) of India has commenced the search for potential investors as part of its ongoing insolvency proceedings, as stated in a newspaper advertisement released on Monday. The airline has taken this step in compliance with the procedural requirements mandated by Indian law.
According to two bankers familiar with the matter, the Wadia Group, which previously owned Go Airlines before it filed for bankruptcy, is anticipated to participate in the airline's insolvency process. However, the Wadia Group has not directly conveyed their intentions to the bankers involved in the process. Go First Airlines and Ness Wadia, representing the Wadia Group, have not responded to requests for comment from Reuters.
One of the bankers, who preferred to remain anonymous due to their direct involvement in Go First's insolvency proceedings, revealed that the Wadia Group has consistently displayed an inclination to sustain the airline's operations. The banker emphasized that the Wadia Group is not legally disqualified from bidding for the airline, as no technical default has occurred.
The airline suspended its flights on May 3 due to financial constraints and is presently undergoing the Corporate Insolvency Resolution Process (CIRP). The Directorate General of Civil Aviation (DGCA), India's aviation regulator, is conducting a special audit of Go First Airlines, which has sought approval to recommence operations.
Following the voluntary plea filed by the airline, the National Company Law Tribunal (NCLT) admitted the case for resolution proceedings on May 10. Recently, Go First Airlines' resolution professional informed PTI that the airline intends to challenge a ruling by the Delhi High Court allowing lessors to inspect its aircraft. The resolution professional cited discrepancies between the high court's order and the NCLT's directive in the case. The high court also directed the DGCA to grant access to the lessors, their employees, and agents for inspecting the 30 parked aircraft within three days.
In accordance with the earlier order issued by the NCLT, the resolution professional is responsible for maintaining the airworthiness of the aircraft and engines currently under their possession.
