Go First's lenders to seek extension of insolvency process by 60 days

Lenders to India's Go First are looking to seek an extension of the insolvency process by another 60 days amid interest from potential suitors, two banking sources said.

Under the country's Insolvency and Bankruptcy Code, the National Company Law Tribunal (NCLT) has the authority to extend the resolution timeframe to a maximum of 330 days.

Go First, which filed for bankruptcy in May last year, would have been under the resolution process for 270 days as on Feb. 4.

The beleaguered airline has received expressions of interest from SpiceJet promoter Ajay Singh, UAE-based Sky One and Busy Bee, said the sources, who did not want to be identified as they are not authorised to speak to the media.

"Formal expressions of interest and bank guarantees have been submitted by the three suitors and they will need 15-20 more days to conduct due diligence and place formal bids," said the first banker with state-run bank that has exposure to Go First.

Go First's resolution professional, who conducts the insolvency process, did not immediately respond to a request for comment.

The Committee of Creditors (CoC) will meet on Thursday and decide on a fresh date to submit bids, the second banker said.

Go First's bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among creditors to which the carrier owes a total of 65.21 billion rupees ($785.67 million).