Jindal Power will not submit bid for GoFirst – Times of India

by The Technical Blogs

NEW DELHI: It may soon be curtains for Wadia Group‘s low cost GoAir, which had suspended operations this May. Naveen Jindal’s Jindal Power – which gave the only eligible expression of interest for reviving the airline under bankruptcy process – is not going to submit its bid, say sources.
The airline’s lenders are meeting on Wednesday to decide the future course of action.Liquidation of assets to recover some dues seems to be on the cards as chances of extending the date for getting a bid this time or going for a second round of inviting EoIs are negligible, given the tepid interest in the airline.
“We evaluated the airline’s financials and have decided not to go ahead with the bid,” sources say. Jindal Power did not comment. GoFirst management and its EY-backed resolution professional Shailendra Ajmera did not comment either.
TOI had on October 12 reported that Jindal Power is “not very serious” about the GoAir EoI and that the same was submitted to mainly estimate the valuation of the airline. The Naveen Jindal company is expanding its thermal and renewable energy business.
GoAir had started flying in November 2005, almost 10 months before IndiGo, but it grew very slowly. By the time it shut down this summer – with the trigger being Pratt & Whitney’s snag-prone engines that had grounded half of the airline’s fleet – it had 56 leased planes.

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