Jindal Power withdraws bid, pushing Go First closer to liquidation
POWER & RENEWABLE ENERGY

Jindal Power withdraws bid, pushing Go First closer to liquidation

Jindal Power, the sole company whose expression of interest in acquiring Go First was accepted by creditors, has opted not to proceed with a bid, according to three individuals familiar with the matter. This decision brings the financially troubled airline closer to the prospect of liquidation.

Sources informed Reuters that Jindal decided against submitting a bid after a thorough evaluation of Go First's financial statements. Although the deadline for takeover bids could be extended through a court application, current indications suggest that creditors are not inclined to pursue such an extension, as mentioned by two banking sources.

One source explained, "The Expression of Interest was primarily aimed at assessing the airline's valuation and gaining access to the company's data. Following the evaluation, the company has chosen not to proceed with a bid." The sources, who preferred to remain anonymous as they lacked authorisation to speak to the media, revealed this information.

As of the time of reporting, Jindal Power and Go First's resolution professional had not responded to email inquiries seeking comments.

Go First filed for voluntary insolvency in May and currently owes a total of 65.21 billion rupees ($785.6 million) to its creditors. Some bankers had pinned their hopes on Jindal's interest, but it seems that these hopes have not materialised, according to a banker from a lender with exposure to Go First.

The Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the major creditors of the airline. A meeting is scheduled for Wednesday to determine the next steps, according to another banker, who also spoke on condition of anonymity.

Both bankers conveyed that the liquidation of the airline appears to be the most likely outcome due to the absence of serious bidders. Meanwhile, banks are assessing a property held as collateral with lenders in the event of liquidation.

Go First is currently entangled in a legal dispute with its lessors, who were barred from repossessing planes due to a moratorium imposed by Indian courts. Although a recent amendment to India's insolvency rules permits lessors to reclaim planes, a court has yet to decide whether this change can be retroactively applied to Go First.

Jindal Power, the sole company whose expression of interest in acquiring Go First was accepted by creditors, has opted not to proceed with a bid, according to three individuals familiar with the matter. This decision brings the financially troubled airline closer to the prospect of liquidation. Sources informed Reuters that Jindal decided against submitting a bid after a thorough evaluation of Go First's financial statements. Although the deadline for takeover bids could be extended through a court application, current indications suggest that creditors are not inclined to pursue such an extension, as mentioned by two banking sources. One source explained, The Expression of Interest was primarily aimed at assessing the airline's valuation and gaining access to the company's data. Following the evaluation, the company has chosen not to proceed with a bid. The sources, who preferred to remain anonymous as they lacked authorisation to speak to the media, revealed this information. As of the time of reporting, Jindal Power and Go First's resolution professional had not responded to email inquiries seeking comments. Go First filed for voluntary insolvency in May and currently owes a total of 65.21 billion rupees ($785.6 million) to its creditors. Some bankers had pinned their hopes on Jindal's interest, but it seems that these hopes have not materialised, according to a banker from a lender with exposure to Go First. The Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the major creditors of the airline. A meeting is scheduled for Wednesday to determine the next steps, according to another banker, who also spoke on condition of anonymity. Both bankers conveyed that the liquidation of the airline appears to be the most likely outcome due to the absence of serious bidders. Meanwhile, banks are assessing a property held as collateral with lenders in the event of liquidation. Go First is currently entangled in a legal dispute with its lessors, who were barred from repossessing planes due to a moratorium imposed by Indian courts. Although a recent amendment to India's insolvency rules permits lessors to reclaim planes, a court has yet to decide whether this change can be retroactively applied to Go First.

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