Foxconn pulls out of JV for chip manufacturing, Vedanta moves ahead

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khaskhabar.com : Tuesday, 11 July 2023 11:13 AM

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Chennai. Shailendra Ajmera, resolution professional, Go Airlines (India) Limited has invited expression of interest (EoI) for private airlines.

The airline with a revenue of Rs 4,183 crore (for FY2022) belonging to the Wadia Group has around 4,200 employees.

The last date for receipt of EOI is August 9, 2023 and the provisional list of potential resolution applicants will be published on August 19, 2023. August 24, 2023 has been set as the last date for submission of objections against the provisional list of potential resolution applicants.

Top executives of Go Airlines had told IANS that the Wadia group was interested in continuing with the airline business. The Wadia Group had voluntarily approached the National Company Law Tribunal (NCLT) in May 2023 to protect its leased planes from being repossessed.

When asked about the firewall built around Go Airlines by the promoters against rival bids before going to NCLT, the then CEO Kaushik Khona told IANS in an interview: “The NCLT and the IBC (Insolvency and Bankruptcy Code) The process will be followed after the application is approved. The question (takeover bids) to be resolved is hypothetical.”

Khona had said that the airline promoters – the Wadia Group – are interested in the business and the object of approaching the NCLT is to retain the aircraft as the lessors are taking action to take them back.

He also said that re-bidding for the airline was not contemplated by the promoters while approaching the NCLT. A bankruptcy petition is no excuse for not getting loan forgiveness.

“We have not asked the banks to give haircut (waiving off a part of the loan),” Khona said.

As per reports, the total liability on the airline – due to banks, other creditors, vendors etc – is around Rs 11,463 crore.

Central government-owned Central Bank of India said its outstanding exposure to Go Airlines stood at Rs 1,305 crore as on March 31, 2023, and an additional amount of Rs 682 crore was sanctioned under the emergency credit line guaranteed by the Government of India.

The airline has defaulted on dues to aircraft lessors and others, but not banks, and the account has not been classified as a non-performing asset (NPA) by the bankers.

With nearly 50 per cent of its A320neo fleet grounded, the country’s third largest airline has approached NCTL for resolution under Section 10 of the IBC.

The airline had said that it has approached the NCLT… due to the ever-increasing number of defective engines supplied by Pratt & Whitney’s International Aero Engines, LLC, resulting in suspension of GoFirst (the airline brand) till May 1, 2023 25 aircraft have to be grounded, which is equivalent to about 50 percent of its Airbus A320neo aircraft fleet.(IANS)

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