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☆ India's Go First airline seeks investor interest as part of insolvency process
▼ + stars: | 2023-07-10 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, July 10 (Reuters) - India's Go Airlines (India) Ltd has invited investor interest in the company through a court-appointed administrator as part of the carrier's ongoing insolvency, a newspaper advertisement showed on Monday. Two bankers aware of the developments told Reuters on Monday that they expect Indian conglomerate Wadia Group - which used to own Go Airlines before it started bankruptcy proceedings - to be part of its insolvency process. Go Airlines and Wadia Group's Ness Wadia did not immediately respond to a Reuters request for comment. "They (Wadia Group) are not disqualified by law to bid for the airline because there has technically been no default," this banker said. Right after the bankruptcy filing, the airline's then chief executive had told Reuters that the Wadia Group was completely committed to the company.

Persons: Ness Wadia, Whitney, Yagnoseni Das, Rama Venkat, Nivedita Organizations: Go Airlines, Wadia, Airbus, Reuters, Wadia Group, Thomson Locations: BENGALURU, India, Bengaluru, Siddhi Nayak, Mumbai

☆ Factbox: India's Go First seeks revival after court grants bankruptcy protection
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: +2 min

The airline is owned by the Wadia Group, which also runs bread and biscuits maker Britannia Industries (BRIT.NS) and textile firm Bombay Dyeing and Manufacturing Co (BDYN.NS). Nearly half of the fleet was grounded due to problems with their Pratt & Whitney (P&W) jet engines that are yet to be replaced. The low-cost carrier posted its biggest annual loss in fiscal 2022, local media have reported. The Wadia Group was in talks to sell a part of its stake or completely exit the airline, the Economic Times newspaper reported in April. The grounding and related issues also saw the airline delay plans to go public, local media reported.

India has made it easier for lessors to take back planes if airlines default on payments after joining an international treaty known as the Cape Town Convention. But lack of a proper legislation to enforce the treaty means India's bankruptcy law will supersede lessors' repossession requests, lawyers said. Go First's lessors include major global names such as Jackson Square Aviation, SMBC Aviation Capital and CDB Aviation's GY Aviation Leasing. Bigger rivals IndiGo (INGL.NS) and Tata Group's Air India are charting major expansion plans with hundreds of new planes on order as domestic air travel in India surpasses pre-pandemic levels. Air India did not immediately respond.

☆ Factbox: India's Wadia Group whose Go First is in trouble
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

NEW DELHI, May 4 (Reuters) - India's Wadia Group has survived British colonial rule and fierce business rivalries to create an empire that spans industries, from aviation and real estate to retail, healthcare, engineering and chemicals. - Founded in 1736 by Loeji Nusserwanjee Wadia, the group began as a marine construction company that built ships for the British empire, according to its website. - Chairman Nusli N. Wadia is the grandson of Pakistan's founder, Muhammad Ali Jinnah. - Go First, India's third-largest airline filed for bankruptcy protection blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet. The Wadia Group said all its transactions had been conducted in compliance with the law.

The cash-strapped carrier, India's third-biggest and best known as Go First, filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney (P&W) engines for the grounding of about half its fleet. IndiGo has also had to ground planes because its P&W engines faced problems, but its bigger fleet with diverse engines, and its deeper pockets, meant it could overcome the troubles better than Go First. The airline started operations in 2005 and is owned by bed sheets-to-biscuits Wadia Group, one of India's oldest conglomerates. "The Wadia Group, in particular (chairperson) Nusli Wadia, has always tried to see that the company and the airline operations go on, on a normal basis," Khona said. "There is no question of Wadia Group having any intention to exit or move out."

☆ Go First bankruptcy isn’t the end of the Indian airline, says owner
▼ + stars: | 2023-05-03 | by ( ) edition.cnn.com time to read: +2 min

His comments came a day after the cash-strapped Indian airline filed for bankruptcy, blaming “faulty” Pratt & Whitney (P&W) engines for the grounding of about half its fleet. The airline owed financial creditors 65.21 billion Indian rupees ($797 million), its bankruptcy filing showed. Boon for rivalsGo First’s bankruptcy may boost airfares in India and give other domestic airlines a chance to grab a larger chunk of the market share, analysts said. Share prices of India’s largest airline, IndiGo, were up 5.1% on Wednesday, after rising as much as 8.2% earlier. Lenders to Go First, including Central Bank of India, Bank of Baroda, IDBI Bank and Axis Bank, fell on Wednesday.

NEW DELHI, May 3 (Reuters) - India's Wadia Group, the owner of cash-strapped Go Airlines (India) Ltd, is completely committed to the company, and has no plans to exit it, the airline's chief executive said on Wednesday. The news came a day after the airline, recently rebranded as Go First, filed for bankruptcy, blaming "faulty" Pratt & Whitney (P&W) engines for the grounding of about half its fleet. The insolvency proceedings were aimed at reviving the airline and not selling it, Chief Executive Kaushik Khona told Reuters in an interview, adding that the company had made all payments to Pratt & Whitney. The airline was also looking to engage with lessors to dissuade them from taking any action, he added. Reporting by Tanvi Mehta and Chris Thomas; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ IndiGo shares surge after smaller rival Go First files for bankruptcy
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, May 3 (Reuters) - Shares of India's largest airline IndiGo (INGL.NS) surged over 8% on Wednesday as smaller rival Go First's bankruptcy filing raised hopes of market share gains and improved yields. Cash-strapped airline Go First filed for bankruptcy on Tuesday, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet and taking lenders by surprise. Lenders to Go First, including Central Bank of India (CBI.NS), Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS) and Axis Bank (AXBK.NS) dropped 1.1% to 6.8% on Wednesday. Go First owes financial creditors 65.21 billion rupees ($798 million), its bankruptcy filing showed. Bombay Burmah Trading (BBRM.NS), which is also owned by Wadia and has given loans to Go First in the form of inter-corporate deposits, slid 10%.

☆ Factbox: India's Go First seeks insolvency resolution as engine trouble grounds fleet
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +1 min

May 2 (Reuters) - Cash-strapped Indian airline Go First Airways filed for voluntary insolvency resolution proceedings in the National Company Law Tribunal on Tuesday. The airline is owned by the Wadia Group, which also runs bread and biscuits maker Britannia Industries (BRIT.NS) and textile firm Bombay Dyeing and Manufacturing Co (BDYN.NS). The low-cost carrier posted its biggest annual loss in fiscal 2022, local media had reported. The Wadia Group was in talks to sell a part of its stake or completely exit the airline, the Economic Times newspaper had reported in April. The grounding and related issues also saw the airline delay plans to go public, local media reported.

☆ India's Go First Airways files for insolvency proceedings, suspends flights - report
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, May 2 (Reuters) - Cash-strapped Indian airline Go First Airways has suspended its flights for May 3 and 4, and filed for insolvency resolution proceedings in the National Company Law Tribunal, local media reported on Tuesday. Go First is suspending flights due to a severe funding crunch, PTI said in a report carried by ET Now, citing the airline's Chief Executive Kaushik Khona. The grounded flights have led to Go First's market share falling to 6.9% in March from 8.4% in January, latest data from the Indian aviation regulator showed. Go First has also sued Pratt & Whitney in a U.S. federal court, seeking to enforce an arbitral award that asks the engine maker to supply the airline, the ET report said. Reporting by Varun Vyas in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ India's regulator bars Bombay Dyeing and others from securities market
▼ + stars: | 2022-10-22 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Oct 22 (Reuters) - India's Bombay Dyeing and Manufacturing Company Ltd (BDYN.NS) has been barred by the country's capital market regulator from the securities markets for two years. The Securities and Exchange Board of India (SEBI) issued a statement late Friday barring Bombay Dyeing and its "promoters" (owners) - Nusli N Wadia and his sons, Ness and Jehangir - from the securities markets for up to two years. Four companies in the Wadia Group are listed on Indian Stock Exchanges, including Bombay Dyeing. The regulator said it had conducted a detailed investigation into the affairs of Bombay Dyeing from 2011-2012 and 2018-2019. The Wadia Group has been contacted for comment.

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