SpiceJet and 2 others race to declare bankruptcy Go First shares rise 20%.

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Spicejet, a low-cost airline based in India; Sky One, a company based in Sharjah; and Safrik Investments, which focuses on Africa, have reportedly expressed interest in acquiring the insolvent Go First. SpiceJet and 2 others race to declare bankruptcy Go First shares rise 20%.

CNBC-TV18 reported that the three had asked the resolution expert supervising Go First’s corporate insolvency resolution process (CIRP) to perform due diligence on the grounded airline.

According to banking sources cited in the report, the request was received after the deadline for submitting proposals had passed, and financiers were contemplating the possibility of liquidating the airline. Moneycontrol was unable to verify the allegation independently.

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In May, Go First, an organization supported by the Wadias, voluntarily submitted an insolvency petition to the National Company Law Tribunal (NCLT). The airline in crisis blamed its decision on engine supplier Pratt & Whitney (PW), claiming that the escalated failure rates of engines provided by International Aero Engines, a division of the United States-based firm, compelled the airline to make the change.

SpiceJet, a prominent player in the aviation industry, is regarded as a formidable contender; however, the airline’s continuous predicament has prompted financial experts to adopt a skeptical stance toward the situation.

The report quoted sources as saying that financial institutions were concerned about the cash-strapped carrier’s prospective involvement in the acquisition process despite its industry expertise.

SpiceJet disclosed its intentions to generate over Rs 2,250 crore last week by issuing 320.8 million new equity shares and 130 million convertible warrants, each priced at Rs 50.

All 64 allottees, including Prabhudas Lilladher Advisory Services, LKP Finance, Martina Developers, and Fincon, would be issued convertible warrants by the airline.

According to sources, the proposed infusion of capital is anticipated to facilitate SpiceJet’s prospective acquisition of Go First.

According to sources, lenders of Go First are expected to hold a meeting later this week to determine the company’s next steps.

According to reports, Go First has a total liability of Rs 11,463 crore, of which Rs 6,521 crore is comprised of bank dues. According to sources, the ongoing resolution process and discussions with creditors were substantially influenced by the airline’s financial health, which included its substantial liabilities.

In December, SpiceJet shares experienced a substantial increase of nearly 20 percent, attaining a 52-week high. This surge in the airline’s stock value was precipitated by reports that it was considering acquiring the insolvent airline Go First. On December 18, SpiceJet’s shares experienced a significant increase of 19.56 percent in value, peaking at Rs 64.07 per share, in contrast to their previous closing value of Rs 53.58 on the BSE.