Days after a bid deadline passed with no takers for the firm, Go First's lenders will cast their votes on a plan to liquidate the bankrupt Indian airline, two banking sources said. "The proposal whether or not to liquidate the airline has been floated and individual lenders will take the proposal to their boards and submit final votes in 10-15 days," said a banker with a state-run bank that has exposure to Go First.
"It appears that there is no interest from suitors for the airline and bankers are inclined to opt for liquidation rather than restarting the insolvency process."
Go First owes its creditors $785.6 million in total. The company filed for bankruptcy protection in May. Among the airline's creditors are the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.
The only business whose bid to acquire Go First was approved by creditors, Jindal Power, likewise chose not to proceed with a bid, according to reports. "Liquidation is the only viable option before banks as legal troubles are deterring suitors," said the second banker.