Wadia Group in talks with investors to jointly bid for Go First: Report
Wadia Group is in talks with financial investors to jointly bid for cash-strapped Go First, The Economic Times (ET) reported on Tuesday. However, the decision will depend on whether or not the grounded airline will be deemed airworthy again.
On Monday, the decision specialist (RP) called for expressions of interest (EOI) from investors. The last date for the EOI is set for August 9.
the Wadia Group Earlier it owned 100 percent stake in Go First through various entities owned by Nusli Wadia and his family. The airline has a total liability of Rs. 11,463 crore to all creditors.
Section 29A of the Insolvency and Bankruptcy Code (IBC) disqualifies a person/entity to bid for an asset if a willful default has been declared or if the person is a promoter of a business that has been classified as non-performing assets (NPA) by banks.
However, the official quoted in ET The report said Wadia Group has not defaulted on any loans and is therefore eligible to bid for the airline.
The group wants to hedge its bets in the aviation sector and therefore wants to enter into a partnership with a financial investor while owning a majority stake.
But the airline must start flying soon to preserve the value of its assets. “If grounding is prolonged, it becomes unworkable without assets such as parking spaces and trained manpower,” said an official. ET.
On Monday, the Director General of Civil Aviation (DGCA) of the Delhi High Court said that Lessors from Go First Maintenance work on the aircraft cannot be done on the ground. According to the aviation regulator, based on their records, Go First is the only entity authorized to maintain the aircraft.
The Directorate General of Civil Aviation said that if there is not enough clarity regarding maintenance responsibility, it could hinder the processing of the Go First revival plan, raising safety concerns.
First published: July 11, 2023 | 9:43 a.m ist