Top Stories

Jindal Power bids for grounded Go First

Oct 12, 2023

By: BlinkX Research Team

The struggling low-cost Go First airline, which is controlled by the Wadia family and is the first commercial airline in India to voluntarily seek bankruptcy protection, has apparently drawn attention from Naveen Jindal's Jindal Power.

With creditors admitting claims totaling more than Rs 20,000 crore, the airline in crisis is dealing with serious financial difficulties.

The founder of Jindal Steel and Power, Naveen Jindal, has been growing his privately held company empire and pursuing new business opportunities recently.

He has made acquisitions in a number of industries, including as coal mining, steel, and power, and he also intends to enter the renewable energy market. The interest in Go First represents a calculated entry into the aviation industry and demonstrates a wider diversification strategy.

Go First is racing against time to resume its services. The airline's lenders extended the deadline for the submission of EoIs twice, as there was a lack of interest from potential buyers. The latest deadline for EoI submission was set for September 28.

The airline filed for voluntary insolvency proceedings in the National Company Law Tribunal (NCLT) on May 2, attributing the decision to substantial revenue losses.