Possible rival bids for Go Airlines in the wind
Risk of some other interested groups making bids for crisis-hit airline that may be attractive for the creditors is always there
NCLT admits Go Airlines' petition
- CEO said the group has not asked the banks to take a haircut
- Going to NCLT is to retain the aircraft as the lessors are taking action to repossess them
- Go Airlines owes Rs11,463 cr to lenders
- Wadia group wants to continue in business
- Go Airlines CEO said idea of promoters rebidding was not thought of
Chennai: Even though the Wadia group has approached the National Company Law Tribunal (NCLT) voluntarily to protect their leased planes from being repossessed, there exists the risk of other interested groups bidding for Go Airlines (India) Ltd, said a Supreme Court advocate.
“The risk of some other interested group making a bid for Go Airlines that may be attractive for the creditors is always there. Go Airlines might have gone to NCLT voluntarily with an intention to retain its assets, but the risk of facing rival bids does hang over the promoters heads like the Damocles sword,” said D Varadarajan, Supreme Court advocate specialising in corporate laws.
The purpose of NCLT is to resolve the issues fast, he added.
Queried about the firewall that the promoters have built around Rs7,100 crore-turnover Go Airlines against rival bids before landing in NCLT, Kaushik Khona, Chief Executive Officer, said: “The process of NCLT and the IBC (The Insolvency and Bankruptcy Code) will be followed once the application is admitted. The question (takeover bids) is hypothetical to be addressed.”
