Jindal Power, Supported by Naveen Jindal, Expresses Interest in Go First Acquisition

Jindal Power Ltd (JPL), supported by Naveen Jindal, has taken a significant step in the potential revival of Go First, the Wadia-group airline that ceased operations in May due to financial woes stemming from defective aircraft engines. The sole expression of interest (EoI) submission by JPL has marked a crucial development in the insolvency resolution process.

In July, Shailendra Ajmera, the airline's resolution applicant, initiated the process of inviting expressions of interest from prospective suitors to assume control of Go First. After several extensions, the EoI window officially closed in September, yielding only one interested party. Notably, two foreign entities had initially displayed interest but ultimately did not meet the qualifications.

With its EoI submission, JPL gains access to the virtual data room, allowing the company to conduct the necessary due diligence before proceeding with a formal bid for the grounded airline. The insolvency resolution process is set to conclude within a 180-day period, scheduled to end on November 6. The extension of this timeline will depend on the continued interest of JPL and the decision of the airline's lenders.

JPL, a private entity owned by Naveen Jindal and his family, was acquired from the publicly listed Jindal Steel & Power in 2021. Notably, the Jindal family also possesses India Flysafe Aviation Ltd, a charter company that specializes in helicopter and plane rentals.

While the submission of a single EoI does not pose a challenge under the bankruptcy code, Go First's path to recovery is complicated by ongoing litigation with aircraft lessors. The Delhi High Court is expected to address the lessors' plea to deregister Go First planes, considering a government notification that excludes leased planes from the insolvency moratorium.

Additionally, the committee of creditors is yet to evaluate Ajmera's request for additional funds to cover employee salaries. With staff members having gone unpaid for the past three months, concerns were raised during a recent meeting with the resolution professional. The fate of Go First remains contingent on these critical developments in the days ahead.

HBL