Bankrupt Go Airlines has sought investor interest through a court-appointed administrator as part of its ongoing insolvency process, Reuters reported citing a newspaper advertisement today. The Expression of Interest (EoI) inviting process signifies the formal start of seeking buyers or investors for a potential investment. This is in line with the procedural requirements of the Indian law.
The last date for receiving the interest for the airline has been set for August 9, reports have said.
Bankers aware of the development have told Reuters that Wadia Group is expected to be a part of the insolvency process. The group used to own the airlines earlier. “There has always been intent and inclination from the Wadias to keep the airline afloat,” a banker told Reuters. The banker added that by law the group is not disqualified to bid for the airline as there has been no default technically.
Go Airlines declared bankruptcy in May. The news dragged in the “faulty” engines by Pratt and Whitney which Go First alleged led to the grounding of its aircraft. However, Pratt and Whitney denied the claims and said they were without merit.
Earlier, the Delhi High Court allowed aircraft lessors to inspect the aircraft on lease with Go First. Following this, an appeal was filed by the airlines’ Resolution Professional (RP) challenging the order.
In its order, the court had allowed the lessors to carry out maintenance work and restrained the airlines and its RP from removing any parts or documents from the planes being discussed. Justice Tara Vitasta Ganju passed the order after lessors sought deregistration of their aircraft with Go First.