NEW DELHI: EaseMyTrip founder Nishant Pitti has raised by another Rs 150 crore his joint bid for Go First (earlier GoAir) along with SpiceJet chairman & MD Ajay Singh. The initial bid, with Pitti providing the funding and Singh operational know-how, is learnt to have been Rs 500-600 crore, say sources.
However, with the erstwhile Wadia group airline owing creditors, including banks, Rs 6,521 crore, the committee of creditors reportedly asked Pitti to relook the same. And now, the combined bid value is Rs 1,650-1,700 crore, say sources. The CoC will examine the bid this month-end.
“Of the Rs 1,700-crore bid, the cash outgo by Pitti is Rs 750 crore. The remaining part is incumbent upon several things like the outcome of the ongoing arbitration case in Singapore with Pratt & Whitney, if revived what kind of slots and flying rights Go First gets,” say sources.
Go First, which stopped flying last May, had got two surprise bids after the first round to revive it under India’s insolvency law drew a blank. This includes a joint bid by Singh’s Busy Bee and Singh and the other by Sharjah-based Sky One. Thanks to these, NCLT had on Feb 13 extended the deadline by another 60 days to complete Go First’s resolution process.
“Two bids are necessary for the process to go ahead as a single bid could have meant either the process being repeated or the airline going in for liquidation. Now that Pitti has improved the same, this is the brightest chance that Go First has of flying again,” said people in the know.
However, with the erstwhile Wadia group airline owing creditors, including banks, Rs 6,521 crore, the committee of creditors reportedly asked Pitti to relook the same. And now, the combined bid value is Rs 1,650-1,700 crore, say sources. The CoC will examine the bid this month-end.
“Of the Rs 1,700-crore bid, the cash outgo by Pitti is Rs 750 crore. The remaining part is incumbent upon several things like the outcome of the ongoing arbitration case in Singapore with Pratt & Whitney, if revived what kind of slots and flying rights Go First gets,” say sources.
Go First, which stopped flying last May, had got two surprise bids after the first round to revive it under India’s insolvency law drew a blank. This includes a joint bid by Singh’s Busy Bee and Singh and the other by Sharjah-based Sky One. Thanks to these, NCLT had on Feb 13 extended the deadline by another 60 days to complete Go First’s resolution process.
“Two bids are necessary for the process to go ahead as a single bid could have meant either the process being repeated or the airline going in for liquidation. Now that Pitti has improved the same, this is the brightest chance that Go First has of flying again,” said people in the know.