Go First bankruptcy: Former promoters Wadia group may bid for the crisis-hit airline

The former promoters of Go First, Wadia group is set to bid for the airlines, reported The Economic Times. As per the report the group is in talks with financial investors such as private equity funds and alternative investment funds to jointly bid for the airline.

This, comes after the resolution professional of the airline invited Expression of Interests (EoI). The EoI will allow the bidders to bid for the airline by August 9.

As per Economic Times, the Wadia group has taken opinion from lawyers confirming that the erstwhile promoters are eligible to bid for the airline as they have not defaulted on loans. According to Section 29A of the Insolvency and Bankruptcy Code (IBC), a person or entity is ineligible to bid for an asset if it is declared a wilful defaulter or if they are promoter of a company that has been classified as a non-performing asset (NPA).

The Wadia group had filed for voluntary insolvency on May 3 and has not defaulted before than. So, technically the group can bid for the airline.

“At the time when Go First had filed a voluntary insolvency application in NCLT, the airline or any other company owned by the Wadia Group had not defaulted. Hence, the promoters are qualified to bid. We would like to explore this although nothing is final,” an official of the Group told Economic Times.

The group had owned 100% of Go First through various entities owned by Nusli Wadia and his family.