Naveen Jindal looks to pilot Go First out of insolvency, company submits EoI

Naveen Jindal, the promoter of Jindal Steel and Power, is understood to have put in an expression of interest (EoI) to buy insolvent airline Go First, multiple highly placed sources close to the development told ET. The Wadia family-owned Go First is India's first commercial carrier to have voluntarily sought bankruptcy protection.

The EoI has been submitted by unlisted Jindal Power, which is owned by Worldone Pvt Ltd, a closely held company of Naveen Jindal.

Green foray

It is not clear whether the company is looking to acquire the airline outright or come in as a strategic investor, the sources cited above said.

There were two other bidders for the airline, officials said, but they did not meet the eligibility criteria set out by the creditors.

"The government, the legal ecosystem and regulators are moving as swiftly as possible on the legalities to save the airline," said an official, requesting not to be named. "Every stakeholder is keen that the airline flies again, but every move has to respect the law of the land."

Jindal Power did not respond to ET's request for comment. Go First's resolution professional, Shailendra Ajmera, did not respond to ET's mailed query on the subject.

Go First has more than ₹20,000 crore in admitted claims from financial and operational creditors. Jindal, a former Congress parliamentarian from Haryana, has been in recent years expanding his privately held empire and diversifying into new businesses. In the past three years, he has acquired Oman-based Jindal Shadeed Iron and Steel, and Jindal Power from the group's listed company, Jindal Steel and Power. In 2021, he acquired the Moatize coal mine in Mozambique from Brazilian miner Vale. Apart from these, Jindal is also working on venturing into renewable energy, sources said. He has also engaged with private credit funds and foreign banks for a funding line to explore the option of delisting Jindal Steel and Power, ET reported on July 17.

Bid deadlines extended
Go First, meanwhile, is running against the clock to resume its services. Earlier, the airline's lenders had twice extended the deadline for submission of EoIs due to a lack of interest. The latest deadline expired on September 28.

The airline had filed for initiating voluntary insolvency proceedings at the National Company Law Tribunal (NCLT) on May 2, citing huge revenue losses. It blamed US aircraft engines maker Pratt & Whitney for supplying faulty engines that grounded nearly half its fleet of 56 planes. It suspended operations May 3. The airline has received claims worth $2.9 billion from operational and financial creditors. Meanwhile, lessors have filed multiple cases to repossess aircraft and engines.

In early June, the Committee of Creditors (CoC) comprising Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank appointed EY-backed Ajmera as Go First's resolution professional.

Last week, the lessors sought the deregistration of Go First's planes in Delhi High Court so that they could repossess them. This follows a recent order by the Ministry of Corporate Affairs (MCA) that exempts aircraft, engines, and airframes from a moratorium under the Insolvency and Bankruptcy Code, 2016.

However, legal experts believe the order leaves room for ambiguity as it does not clarify whether the norms apply with prospective or retrospective effect. The next hearing in the high court on the matter is scheduled October 19. The NCLT will also take up the matter separately.

In July, the Directorate General of Civil Aviation (DGCA) had conditionally accepted Go First's resumption plans with 15 aircraft operating 114 daily flights, subject to financing.

The banks had agreed to grant an interim financing of up to ₹700 crore.