Jindal Power will not submit a proposal to purchase Airline. Start First: Citations

 Jindal Power will not submit a proposal to purchase Airline. Start First: Citations

The committee of creditors will convene on Wednesday to determine the next steps, according to a different banker.

Among the major lenders to the airline are Deutsche Bank, Bank of Baroda, IDBI Bank, and the Central Bank of India.

According to three persons familiar with the arrangements, Jindal Power Ltd.—the sole Indian business whose proposal to purchase Go First was approved by creditors—has chosen not to submit a bid, forcing the financially troubled airline into liquidation. It's almost there.

The deadline for submitting takeover offers is this Tuesday. Sources told Reuters that Jindal had assessed the airline's financial statistics and made the decision not to make a proposal.

According to two banking sources, creditors are now unwilling to extend the deadline, even though it may be done by filing a court application.

According to one of the sources, "the main purposes of the EOI were to access the company's data and evaluate the airline's valuation." "After evaluation, the company has decided not to bid."

Because they were not permitted to communicate with the media, the sources chose not to be named.

Emails for response from Jindal Power and Go First's resolution specialists were not answered.

Go First owes its unsecured creditors a total of 65.21 billion rupees ($785.6 million) as well as filed for voluntary bankruptcy in May.

According to a banker at a lender with exposure to Go First, bankers had placed their expectations on Jindal's involvement.

The banker, who wished to remain anonymous because he lacked permission to address the media, said, "But it seems that has not happened."

Among the major lenders to the airline are Deutsche Bank, Bank of Baroda, IDBI Bank, and the Central Bank of India.

The committee of creditors will convene on Wednesday to determine the next steps, according to a different banker. Since he was not permitted to communicate with the media, he also refused to be identified.

Since there were no serious buyers, according to both bankers, airline liquidation was now the most probable course of action.

According to a banker, in the event of a liquidation, banks are already appraising the assets that they have retained as collateral with lenders.

Go First and its lessors are now involved in a legal battle since Go First was unable to reclaim the aircraft because of an injunction issued by Indian courts.

Lessors are now able to reclaim aircraft under a recent reform to India's bankruptcy laws, albeit a court has not yet decided whether this may be done with Go First already.