Busy Bee Airways Pvt Ltd, one of the bidders for the grounded airline Go First, has approached the National Company Law Appellate Tribunal (NCLAT) to challenge the airline’s liquidation.
On 20 January the National Company Law Tribunal (NCLT) issued an order that sent Go First into liquidation after the airline’s creditors unanimously voted to liquidate the debt-ridden carrier, citing its lack of assets and a viable recovery plan.
An NCLAT bench led by chairperson Justice Ashok Bhushan, is set to hear the bidder’s plea on Thursday, 23 January. On 21 January, Busy Bee Airways informed the NCLT of its decision to contest the liquidation, saying it intended to submit a resolution plan to take over the airline.
Majority-owned by Nishant Pitti and linked to SpiceJet chairman and managing director Ajay Singh, Busy Bee Airways had previously expressed interest in acquiring Go First but withdrew its bid when the airline was left without any operational aircraft. However, the company has now decided to re-enter the bidding process, adding another twist to Go First’s insolvency saga.
Founded in Delhi on 19 April 2017, with a paid-up capital of ₹1 lakh, Busy Bee Airways had earlier proposed a bid of ₹1,800 crore, up from ₹1,600 crore, for the troubled airline. The consortium of Pitti and Singh also increased their upfront payment offer from ₹290 crore to ₹500 crore.
Another bid came from Jaideep Mirchandani-owned Sky One Airways, but it was withdrawn after a Delhi High Court ruling on 26 April allowed lessors to repossess all 54 Go First aircraft on lease. This left the airline without planes and rendered 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 holds 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 before the NCLT in May 2023, citing engine failures caused by US-based Pratt & Whitney’s International Aero Engines, which severely disrupted its operations.
