 "Go First")
A resolution panel appointed to oversee the insolvency process of crisis-hit Go First has invited an Expression of Interest (EoI) for the possible sale of the carrier, according to a newspaper advertisement on Monday.
An EOI is one of the initial transaction documents shared by the buyer with the seller in a potential M&A deal. A provisional list of prospective resolution applicants will be issued on August 19, the advertisement said.
The airline, which posted Rs 4,183 crore as total revenues from operations in FY22, ceased operations on May 3 this year, as it grounded close to 50 per cent of its fleet due to engine woes. The advertisement stated that the carrier has around 4,200 employees. Prospective investors can submit an EoI to gofirstresolution@gmail.com, it added.
On July 7, a Delhi High Court (HC) order restrained the airline from ‘removing, replacing, and taking out any part or component, or any relevant operational or other manual records’ from aircraft that the airline intends to operate.
Media reports said that lenders to the airline raised concerns over the HC order stating that engineers regularly change components on aircraft on short notice and that ‘written permission’ for every change is not feasible.
Last week, the Singapore International Arbitration Court (SIAC) directed the engine maker Pratt and Whitney to deliver five engines per month between August and December 2023.
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“Pratt & Whitney (P&W) respects the Interim Arbitration ruling and will comply with the order until it is otherwise modified.” a Pratt & Whitney spokesperson had told Business Standard last week.
P&W was ordered to dispatch ‘without delay’ ten serviceable spare leased engines by April 27 and a further ten spare leased engines per month until December 2023 in a previous order.
However, the engine-maker failed to dispatch any serviceable space engines then. Last month, the committee of creditors (CoC) approved interim finance of Rs 425 crore to restart the grounded airline.
