NEW DELHI: In a setback for stakeholders of Go First, billionaire Naveen Jindal-backed Jindal Power Ltd (JPL) has decided against its plan to bid for the airline, which is undergoing an insolvency resolution process, according to industry sources.
JPL had last month put in an Expression of Interest (EoI) for the bankrupt airline. It had sought details about the airline’s assets and other documents. “After going through evaluation, Jindal Power has decided not to put in a bid,” said the industry source. Tuesday (November 21) was also the last day to submit the final bid for the airline.
There was no official comment from JPL or the resolution professional (RP) of Go First on the same. In October, regional carrier Jettwings Airways had announced putting in a bid for Go First. Promoted by the Wadia family, Go First stopped flying on May 3, a day after it filed for bankruptcy.
It faced a financial crisis due to non-supply of engines by Pratt & Whitney (P&W) that led to the grounding of about half of its fleet, forcing it to take this step, the airline had told. Jindal’s decision to back off from buying the airline is a setback for the creditors as they may be left with no other option but to liquate the assets of the airline, said a legal expert.