Go First Airline seeks investors as part of insolvency process

New Delhi, 10th July 2023: A newspaper advertisement published today confirmed that Go Airlines Ltd has now invited investor interest in the company through a court-appointed administrator as part of the carrier’s ongoing insolvency process.

The process of inviting an Expression of Interest (EoI) represents the formal start of seeking purchasers or investors for a possible venture in accordance with legal standards.

Go Airlines, which operated the Go First airline, declared bankruptcy in May, blaming “faulty” Pratt & Whitney engines for grounding approximately half of its 54 Airbus A320neos. The engine manufacturer dismissed the claims.

The issuing and publication of Form G – relating to the invitation for EoI – would be the “prescribed next – step for taking the insolvency to its logical conclusion,” according to regulations, said Abhirup Dasgupta, a partner at HSA Advocates.

However, industry experts indicated that the ultimate settlement will be subject to the “crystallisation of the lessors’ rights.”