Go First insolvency process faces delay as preliminary bids remain absent

The deadline for submitting preliminary interest to bid for insolvent Go Airlines (India) is likely to be extended by another two to three weeks amid the lack of any such application by suitors, two banking sources told Reuters on Friday.

The resolution professional for the company, which operated the Go First carrier, had in July invited investor interest on behalf of creditors after the airline filed for insolvency in May.

The deadline was initially set for August 9 but was later extended to September 8.

"There is no formal EoI (Expression of Interest) as of the September 8 deadline," said a banker with a state-run bank that has exposure to the carrier.

The bankers did not wish to be identified as they were not authorised to speak to the media. Go Airline's resolution professional, who conducts the insolvency process, did not immediately respond to a Reuters request for comment.

15-day extension to submit EoIs

"Three to four bidders have informally expressed interest in bidding for the airline but need some more time to conduct due diligence," the second banker said.

"The RP (resolution professional) will be asking for a 15-20 day extension to submit EoIs."

The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors to whom the carrier owes a total of Rs 6,521 crore.