According to two banking sources and two people familiar with the development, grounded Indian airline Go First has received an expression of interest (EoI) from Jindal Power Ltd. An expression of interest is the first step in the bidding process and may or may not result in a financial bid.
"Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank with Go First exposure.
The power generation company "will be conducting proper due diligence and post which it could submit a formal bid", said the banker, who did not wish to be named as he was not authorized to speak to the media. Go First's resolution professional, who conducts the insolvency process, and Jindal Power did not immediately respond to Reuters requests for comment.
The deadline for submitting EoIs was September 28, according to the banker, and after that, a committee of lenders met to evaluate the applications. Two other foreign entities had also submitted expressions of interest to bid for Go First, but their applications were rejected because they did not meet the criteria set by lenders, according to another banker.
The Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are among the creditors listed in the Go First bankruptcy filing, to whom the carrier owes a total of 65.21 billion rupees ($784.60 million). Go First's aircraft lessors are embroiled in a legal battle with the company after being barred from repossessing planes due to a moratorium imposed by Indian courts.