Budget carrier SpiceJet announced today its intent to submit a proposal, following a comprehensive due diligence process, to the resolution professional of Go First. The objective is to collaboratively “create an airline” with the financially distressed carrier. The disclosure led to a noteworthy uptick of more than 7% in SpiceJet shares.
The development arises as Go First’s lenders contemplate the possibility of the airline’s liquidation, prompted by the absence of bids within the late November deadline.
While SpiceJet refrained from providing specific details about its offer on Tuesday, the airline revealed last week its plans to raise 22.50 billion rupees (approximately $271 million). This capital infusion, achieved through the sale of shares and warrants, is earmarked to support the carrier’s strategic growth initiatives.
Notably, SpiceJet’s bankruptcy filing outlines creditors, including Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, to whom the airline owes a total of 65.21 billion rupees ($784.60 million).