 "Lenders to Go First to auction land parcels in March for recovery")
Three lenders to the now defunct Go First airline will auction land parcels in Thane -- which falls under Mumbai Metropolitan Area -- in March to recover dues of over Rs 3,900 crore. These land plots were made collateral for loan exposures.
The reserve price for the auction is Rs 1,782 crore, according to a communication for a proposed auction for land placed by Central Bank of India on behalf of lenders.
Public sector lender Central Bank of India has taken possession of immovable property, 94.71 acres of land abutting Ghodbunder Road Thane, Maharashtra on behalf of lenders Bank of Baroda, Central Bank and IDBI Bank.
The land is in the name of Wadia Reality Private Ltd. It would be sold on March 12, 2025 through e-auction.
Lenders to the airline are expecting recovery of dues in the first half of the financial year 2026 (H1Fy26), a senior bank executive said.
On January 21, 2025, the National Company Law Tribunal (NCLT) ordered the liquidation of low-cost carrier Go First on the request of its Committee of Creditors (CoC).
It brought an end to the 20-month-long insolvency proceedings. A CoC is a group of lenders who work together to decide the future of a borrower's debt.
Central Bank of India, Bank of Baroda, and IDBI Bank are some of the secured creditors of the airline, with admitted claims of Rs 1,934 crore, Rs 1,744 crore, and Rs 75 crore, respectively.
Lenders have fully provided for credit exposure to the airline in line with regulatory requirements for taking assets for resolution under Indian Bankruptcy Code (IBC).
The airline had filed for voluntary insolvency on May 2, 2023 under Section 10 of the IBC, and on May 10, 2023 the NCLT admitted its plea.
By doing so, the airline joined the ranks of major carriers like Kingfisher Airlines and Jet Airways, which faced similar fate in 2012 and 2019, respectively that highlighted the persistent challenges in India’s aviation industry.
In September 2024, the CoC filed an application to liquidate the company, with no signs of revival of the airline.