MUMBAI– According to two banking insiders, one of the two contenders competing for the bankrupt Indian airline Go First has upped its offer after encouragement from creditors.
The companies, led by SpiceJet’s (SG) managing director Ajay Singh and Busy Bee Airways (BS), have raised the bid by 1 billion rupees and 1.5 billion rupees. Initially, the bid was at 16 billion rupees.
Go First faced a bid from SpiceJet’s
The sources declined to disclose their identities as they lacked authorization to speak to the media.
Go First, which entered bankruptcy proceedings in May last year, received two financial bids, with the second coming from Sharjah (SHJ)-based Sky One Airways.
“The bid amounts in both offers were very low, as expected by the Committee of Creditors (CoC), prompting requests for upward revisions from both bidders,” stated a banker associated with a state-run bank.
Its bankruptcy filing includes creditors such as the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to which it owes a total of 65.21 billion rupees.
The CoC is currently in discussions with Sky One. However, Sky One Airways did not respond immediately to a request for comment.
SpiceJet and Busy Bee’s combined bid will be discussed in the upcoming CoC meeting scheduled for early next week. Lenders are expected to provide feedback to the bidders by March 28th.
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