Jindal Power is interested in buying the troubled airline Go First. The company has submitted an expression of interest (EoI) to acquire the airline. It is also Go First's only bidder.
However, it is unclear if the Naveen Jindal owned unlisted firm wants to accquire the firm or come in as a strategic partner to the deal, according to Economic Times.
Go First is the country's first commercial airline to have voluntarily sought bankruptcy protection. It suspended its operations on 3 May this year.
There were two further bidders for the airline but they were not accepted for further consideration since they did not match the qualifying requirements outlined by the creditors. The resolution specialist for Go First invited EoIs to the carrier's sale in July 2023. The last date for submitting EoIs was set for 28 September.
With creditors admitting claims of over Rs 20,000 crore, the beleaguered airline is dealing with serious financial difficulties. Go First is working against a looming deadline set by its creditors to repay loans.
Bank of Baroda, Deutsche Bank, the Central Bank of India, and IDBI Bank are some of the major lenders to Go First. The company has liabilities totaling Rs 11,463 crore, of which Rs 6,521 crores are in bank debts.
Go First, formerly GoAir, blamed Pratt & Whitney's faulty aircraft engines for the grounding of its planes. The American aircraft engine maker, has, however, denied the Wadia Group owned firm's claims.
The founder of Jindal Steel and Power, Naveen Jindal, has been growing his privately held company empire and pursuing new business opportunities recently. He has made acquisitions in a number of industries, including as coal mining, steel, and power, and he also intends to enter the renewable energy market.