The Singh-Pitti group reveals a Rs. 1,600 crore rescue strategy to Take the Lead

The Singh-Pitti group reveals a Rs. 1,600 crore rescue strategy to Take the Lead

The group has put forth an offer that involves purchasing Go First for 1,000 crore rupees, secured by corporate guarantees and collateral.

Go First will shut down on May 3, 2023.

SpiceJet CMD Ajay Singh and Busy Bee Airways, which is mostly controlled by EaseMyTrip CEO Nishant Pitti, have presented a rescue plan that entails a total investment of Rs. 1,600 crore to help Go First Airlines overcome its financial difficulties.

The consortium has submitted a bid that involves buying Go First for Rs 1,000 crore, supported by corporate guarantees and collateral, according to sources cited by CNBC-TV18. Furthermore, Singh and Pitti have suggested giving Go First an extra Rs 600 crore in order to get the airline back into existence.

In these voluntary bankruptcy resolution processes, the Singh and Pitti group is vying for Go First with Sky One as the other bidder. Sky One, situated in Sharjah, specializes in freight and rented helicopter services. The bids will now be carefully examined, and Mid Hai will conclude in the second week of March.

In May of last year, Wadia-backed Go First filed for voluntary bankruptcy with the National Company Law Tribunal (NCLT). The struggling airline attributed its decision on engine provider Pratt & Whitney (PW), claiming that the US-based company's International Aero Engines had been the source of increasing engine failure issues.

On May 3, 2023, Go First discontinued operations.

The group that Pitti and Singh headed jointly put in a proposal on February 16th to purchase Go First Airlines.

On February 13, the resolution professional (RP) requested a 60-day extension to wrap up Go First's insolvency of corporations resolution process (CIRP). The National Company Law Tribunal (NCLT) in Delhi granted the request.