Aviation: SpiceJet, which is facing cash crunch, expressed desire to acquire Go First, said this to the resolution professional
Cash-strapped airline SpiceJet has expressed acquisition interest to the resolution professional (RP) of Go First. The airline has confirmed that it intends to make a takeover offer after due diligence. In a filing to the stock exchanges, the airline said the objective of the acquisition proposal is to make Go First a strong and viable airline in a possible tie-up with SpiceJet.
Earlier media reports had claimed that SpiceJet has shown interest in acquiring bankrupt aviation company Go First along with two other companies, Sharjah-based aviation company Sky One and Africa-focused Safric Investments.
SpiceJet said, “The company’s board has recently approved the process of raising fresh capital of approximately US $ 270 million to strengthen its financial position and provide resources to invest and growth plans.”
The company had announced a net loss of Rs 428 crore in its September quarter results, which is half of the loss of Rs 835 crore a year ago. The Indian airline also has to pay dues to former promoter Kalanithi Maran following the arbitration award.
People with knowledge of the matter told the media that resolution professional (RP) Shailendra Ajmera, who manages the corporate insolvency resolution process (CIRP) of Go First, received requests from these entities to investigate the airlines in the last 10 days. Was. Go First owes creditors more than Rs 6,200 crore. Central Bank of India and Bank of Baroda Airlines are the top two creditors with outstanding of Rs 1,934 crore and Rs 1,744 crore respectively.
