The National Company Law Appellate Tribunal (NCLAT) has directed Busy Bee Airways, a potential buyer for the bankrupt airline Go First, to engage with the airline’s lenders to negotiate a deal for its acquisition as a going concern. This request followed Busy Bee Airways’ assertion to the NCLAT that it could still proceed with the acquisition, highlighting the airline’s valuable assets, including its license from the Directorate General of Civil Aviation (DGCA), which supports its viability for purchase.
Additionally, the appellate tribunal has instructed the liquidator to provide the minutes from the Committee of Creditors (CoC) meeting that resulted in the decision to liquidate the airline. The NCLAT has set the next hearing for February 10.
Busy Bee Airways, which is backed by Nishant Pitti of EaseMyTrip, had previously contested a liquidation order from the National Company Law Tribunal (NCLT) on January 20. The NCLT’s ruling followed a unanimous vote from Go First’s creditors in favor of liquidation, citing the airline’s insufficient assets and lack of a feasible recovery plan. Busy Bee Airways contended that the NCLT’s liquidation order was issued before its challenge could be heard, leading to its appeal to the NCLAT.
The Bhartiya Kamgar Sena Mumbai trade union has also approached the NCLAT to contest the liquidation, arguing that 5,000 employees would be left without support if Go First were to be liquidated. They urged lenders to maintain the airline as a going concern until the arbitration with Pratt & Whitney is resolved at the Singapore International Arbitration Centre (SIAC).
Busy Bee Airways, primarily owned by Nishant Pitti and associated with SpiceJet chairman Ajay Singh, had initially shown interest in acquiring Go First but withdrew its bid when the airline was left without operational aircraft. However, the company has now re-entered the bidding process, adding complexity to Go First’s insolvency situation.
Founded in Delhi on April 19, 2017, with a paid-up capital of ₹1 lakh, Busy Bee Airways had previously proposed a bid of ₹1,800 crore, an increase from ₹1,600 crore, for Go First. The consortium of Pitti and Singh also raised their upfront payment offer from ₹290 crore to ₹500 crore.
Another bid from Jaideep Mirchandani-owned Sky One Airways was withdrawn following a Delhi High Court ruling on April 26, which permitted lessors to reclaim all 54 Go First aircraft on lease, leaving the airline without planes and making it an unviable asset.
Go First owes ₹6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank. Central Bank of India has the largest exposure at ₹1,987 crore, followed by Bank of Baroda at ₹1,430 crore, Deutsche Bank at ₹1,320 crore, and IDBI Bank at ₹58 crore. The airline, promoted by the Wadias, filed for voluntary insolvency with the NCLT in May 2023, citing engine failures as a significant factor.
