SpiceJet in fray to buy bankrupt Go First
Shares of the airline rose more than 4 per cent to Rs 66.83 apiece in the morning trade on the BSE.
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NEW DELHI: SpiceJet on Tuesday said it has expressed interest to acquire Go First and plans to submit its offer after carrying out due diligence of the bankrupt carrier.
Go First, which stopped flying since May 3 amid financial woes mainly triggered by Pratt & Whitney engine issues, is undergoing an insolvency resolution process. In a regulatory filing, SpiceJet said it “has expressed interest with the resolution professional of Go First and wish to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet”.
Shares of the airline rose more than 4 per cent to Rs 66.83 apiece in the morning trade on the BSE.
The no-frills airline, which is grappling with financial headwinds, last week announced raising around $270 million from various investors.
“The Board of the Company has recently approved and initiated the process of raising fresh capital of about US$ 270 million to strengthen its financial position and provide resources to invest in growth plans,” the filing said on Tuesday.