Go First bidder raises offer following lenders' prompt: Report

Go First insolvency: Amid bankruptcy proceedings of airline Go First, one of the bidding consortiums, including SpiceJet's managing director Ajay Singh and Busy Bee Airways, has opted to enhance their bid after urging from lenders, sources familiar with the matter told news agency Reuters.

Sources revealed that the consortium augmented the bid by a sum ranging between Rs 100 crore to Rs 150 crore in comparison to the original bid amount of Rs 1,600 crore.

The sources, who preferred to remain anonymous due to the sensitivity of the matter, disclosed that the lenders nudged the bidders to revise their offers upward, as both initial bids fell short of the expectations of the Committee of Creditors (CoC).

Go First, which initiated bankruptcy proceedings in May last year, attracted two financial bids as part of the insolvency process, with the second bid coming from Sharjah-based Sky One Airways.

Bankers involved in the process indicated that negotiations are ongoing with Sky One Airways, although they did not provide further details. Sky One Airways has yet to respond to requests for comment.

The joint bid from Ajay Singh and Busy Bee Airways will be deliberated upon in the upcoming CoC meeting, slated to occur early next week, according to banking sources. Lenders are anticipated to provide feedback to the bidders by March 28.

Go First's bankruptcy filing lists several creditors, including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to which it owes a substantial amount.

Efforts to solicit comments from the involved parties, including Go First's resolution professional, Ajay Singh, SpiceJet, Busy Bee majority shareholder Nishant Pitti, and Sky One Airways, were unsuccessful at the time of reporting.

(With Reuters inputs)