Lenders of the bankrupt airlines, Go First, have sought an extension of deadline to submit Expressions of Interest (EOI) for the airline’s potential buyers. Lenders are worried as strategic suitors remain silent, according to a report.
The EOI deadline was originally set for August 9, but it was previously extended to September 8. However, it is now expected to be pushed further into the last week of September, according to a CNBC report.
The continuing legal dispute between Go First and several of its overseas lessors is one possible cause of prospective resolution applicants’ (PRAs) reluctance. Go First has been involved in issues with these lessors as a result of coming under the jurisdiction of the Insolvency and Bankruptcy Code (IBC). The Delhi High Court is due to hear the case on September 13, which may have an impact on PRAs' optimism about the airline's prospects.
The Committee of Creditors, responsible for making crucial decisions about the airline's fate, is set to vote on the proposal to extend the EOI submission deadline later this week. The lenders are hoping that this extension will provide more time for PRAs to assess their options and submit their bids to buy stake in the airline company.
Only a handful of potential buyers have made indirect inquiries through financial advisors, despite the impending deadline. This further deepens Go First’s crisis and the uncertainty around its future.
The Central Bank of India, Bank of Baroda, Deutsche Bank, and IDBI Bank are some of the major lenders to Go First. Go First has liabilities totaling Rs 11,463 crore, of which Rs 6,521 crores are bank debts.
Go First's future is still up in the air as lenders, PRAs, and legal disputes continue to influence it. All eyes are now on the Committee of Creditors' choice about the extension of the EOI deadline, which aims to provide Go First's resolution a longer runway to draw potential buyers for resolution.
