BackJindal Power not to proceed with Go First takeover bid, says report; deadline ends today
While Jindal Power's expression of interest was accepted by Go First's creditors, the company has decided not to follow through after evaluating the airline's financial statements, the report said.
PremiumJindal Power will not proceed with its bid to take over stressed domestic carrier Go First, a report said on November 21, citing sources who are privy to the development.
The news came on the day when the deadline to submit the final bid for the airline is scheduled to end.
While Jindal Power's expression of interest (EoI) was accepted by Go First's creditors, the company has decided not to follow through after evaluating the airline's financial statements, the Reuters report said, citing persons who are familiar with the plans.
Also Read: Go First Insolvency: Carrier faces bleak future as lenders assess fund infusion plans
"The EoI was largely to check the valuation of the airline and get access to the company's data," the news agency quoted one of the sources as saying. “After evaluation, the company has decided not to put in a bid," the person reportedly added.
Meanwhile, two banking industry sources told Reuters that the creditors are not inclined to extend the last date for the submission of takeover bids, even though they have the option to push the deadline by an application before the courts.
Jindal Power and Go First did not immediately react to the report.
The top creditors of Go First include the Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank, among others.
A meeting has been scheduled by the Committee of Creditors on November 22 to decide the future course of action, another source told the news agency, while adding that the most likely option is to go for the liquidation of the airline.
Livemint could not independently verify the developments.
Notably, the cash-strapped Go First was grounded in May this year. The carrier, which has pending dues of ₹65.21 billion to be paid to creditors, also filed for voluntary insolvency in the same month.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
