Wadias likely to leave Go First, show no intent to bid for grounded airline

Cash-strapped Go First filed for bankruptcy in May, blaming “faulty” Pratt & Whitney engines for the grounding of about half its fleet.

The conglomerate has not submitted an EoI for the airline or hinted at any plans to do so. An EoI is the first step towards making financial bids.

While the law does not prohibit the Wadia Group from joining the process at a later stage, there was no current indication it would do so.

On Wednesday, Reuters reported Go First has received an EoI from power generation company Jindal Power. The absence of the Wadia Group from the process would limit choices for creditors to find qualified investors.

The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors, to whom the carrier owes a total of Rs 6,521 crore.

While the Wadia Group was initially keen to revive the airline, they have “completely gone silent now” since a “lot of things have changed on the ground.”

Foreign aircraft lessors of Go First are locked in a tussle with the company after they were blocked from repossessing planes due to a moratorium imposed by courts.

The Centre amended its insolvency law earlier this month to exclude leased aircraft from assets that can be frozen. However, whether the amended law would apply retrospectively to Go First is yet to be determined.

(With agency inputs)