A offer by SpiceJet to purchase the bankrupt airline is expected. According to news agency Reuters, low-cost carrier SpiceJet is probably going to make a bid to purchase the bankrupt airline Go First.
After a period of due diligence and collaborative conversations with Go First’s resolution professional, the decision to make an offer was made public on Tuesday.
SpiceJet’s stock has seen a significant increase as a result of this revelation, rising more than 7% in early trading. SpiceJet’s shares were up more than 3.6% as of 11 a.m.
Go First’s lenders decided to put out a bid after considering the idea of liquidating the airline as no proposals were received by the deadline in late November.
SpiceJet earlier revealed plans to raise nearly Rs 2,250 crore through the sale of shares and warrants in order to support its expansion goals, even though the airline did not provide specific details about its offer.
At present, Go First’s total outstanding debt stands at over Rs 6,500 crore. Its list of creditors includes lenders such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank.
