MUMBAI- The deadline for submitting initial expressions of interest to bid for the financially troubled Go First is expected to be extended by an additional two to three weeks due to the absence of any such applications from potential buyers.
Sources within the banking sector told Reuters that they are considering this extension, and it comes after the resolution professional for the company, responsible for the Go First carrier, had initially called for investor interest on behalf of creditors following the airline’s insolvency filing in May.
Go First on Sale
The initial deadline was set for August 9. It was subsequently prolonged until September 8.
As of the September 8 deadline, no formal Expression of Interest (EOI) has been submitted,” stated a banker affiliated with a state-run bank that holds exposure to the airline.
It should be noted that the bankers speaking on this matter have chosen to remain anonymous. Bankers lack the authorization to engage with the media.
According to the second banker, “Three to four potential bidders have informally indicated their interest in participating in the airline’s bidding process but require additional time to carry out the necessary due diligence.”
“The resolution professional (RP) is expected to request a 15 to 20-day extension for the submission of EoIs.”
The insolvency filing by Go First includes creditors such as the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to whom the airline owes a total of 65.21 billion rupees ($785.62 million).
“Despite assurances of retention bonuses and a swift operational restart, employees are grappling with frustration as their salaries for the months of May, June, and July remain unpaid,” revealed a senior executive associated with the airline, speaking to Moneycontrol.
The executive further indicated that the attrition rate had gradually slowed down following the initial wave of departures in May.
“Approximately 20 individuals were resigning each week, which was anticipated. Most employees with over five years of tenure at the airline stood by its side,” the executive noted.
However, as the current month commenced, employee discontent intensified, leading to a surge in resignations.
“Over the past two weeks, approximately 150 staff members, comprising 30 pilots, 50 cabin crew members, and 50 ground handling and engineering personnel, have submitted their resignation letters.”another executive associated with the airline disclosed
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