Go Airlines (India) Ltd Seeks Investor Interest Amid Insolvency Proceedings

Go Airlines (India) Ltd, has initiated the process of inviting investor interest as part of its ongoing insolvency proceedings. The airline has reached out to potential investors through a court-appointed administrator, in compliance with the procedural requirements mandated by Indian law, Reuters reported.

According to sources familiar with the matter, it is expected that the Wadia Group, the Indian conglomerate that previously owned Go Airlines before it entered bankruptcy proceedings, will participate in the airline's insolvency process.

The Wadias claim that they haven't told bankers specifically what they intend, though. Ness Wadia of the Wadia Group and Go Airlines did not immediately reply to a request for comment from Reuters.

"There has always been intent and inclination from the Wadias to keep the airline afloat," said one of the bankers, who did not want to be named as he is directly involved in Go First's insolvency process.

"They (Wadia Group) are not disqualified by law to bid for the airline because there has technically been no default," this banker said.

Go Airlines, the company that ran Go First, filed for bankruptcy protection in May, attributing the groundeding of roughly half of its 54 Airbus (AIR.PA) A320neos to "faulty" Pratt & Whitney engines. The assertions are false, according to the engine manufacturer.

"There is no formal indication to banks that the Wadia Group will submit an EoI, but the likelihood is that they will," said a banker from a state-owned lender with exposure to the airline and who is a member of the committee of creditors to Go First.

The banker declined to give his name because he was not permitted to speak to the media.

The airline's former CEO had previously assured Reuters that the Wadia Group was fully committed to the firm right after the bankruptcy filing.