Go Airlines (India) Ltd has initiated the process of seeking investor interest as part of its ongoing insolvency proceedings, according to a newspaper advertisement published on Monday.
The airline, which operated under the name Go First, has invited potential buyers or investors to express their interest through a court-appointed administrator, adhering to the procedural requirements mandated by Indian law.
Go First’s Resolution Professional Shailendra Ajmera has invited Expression of Interest (EOI) for the grounded airline by August 9, 2023.
In May, the airline filed for bankruptcy protection, attributing the grounding of approximately half of its fleet of 54 Airbus A320neos to an alleged issues with Pratt & Whitney engines. The engine manufacturer, however, stated that the claims made by Go Airlines were unfounded.
Under the applicable regulations, the issuance and publication of Form G—related to the invitation for expressions of interest—marks a significant milestone in advancing the insolvency process towards its conclusion.
According to regulations, the issuance and publication of the Form G – related to the invitation for EoI – would be the “prescribed next – step for taking the insolvency to its logical conclusion,” said Abhirup Dasgupta, a partner at HSA Advocates,
“The final resolution will, however, be subject to the crystallisation of the rights of the lessors,” Dasgupta, who specialises in insolvency law but is not involved in Go First’s proceedings, said.
The formal commencement of seeking investor interest indicates Go Airlines’ commitment to finding potential buyers or investors who can contribute to its restructuring and financial revival.