Grounded airline Go First has received an expression of interest (EoI) from Jindal Power Ltd, two banking sources and two people aware of the development told Reuters.
An EoI is the first step in the bidding process and 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 that has exposure to Go First.
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 last day to submit EoIs was Sept. 28, the banker said, and a committee of lenders met to assess the applications after that.
Two other foreign entities had also submitted EoIs to bid for Go First, but their applications were rejected for failing to meet the criteria set by lenders, another banker said.
The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors to whom the carrier owes a total of 65.21 billion rupees ($784.60 million).
Aircraft lessors of Go First are locked in a legal tussle with the company after they were blocked from repossessing planes due to a moratorium imposed by Indian courts.
However, the government amended its insolvency law earlier this month to exclude leased aircraft from assets that can be frozen, to bring India's bankruptcy laws into line with a treaty protecting the rights of foreign lessors.
It is unclear whether the amended law would apply to Go First since its insolvency proceedings are still underway.
Additionally, Go First's former owner, the Wadia Group, has not shown an intent to bid for the grounded Indian airline and has stayed away from the insolvency process so far amid an ongoing legal tussle, three sources told Reuters.
Cash-strapped Go First filed for bankruptcy in May, blaming "faulty" Pratt & Whitney engines for the grounding of about half its fleet.
Two banking sources said on Thursday the conglomerate has not submitted an expression of interest (EoI) - the first step towards making financial bids - for the airline or hinted at any plans to do so despite a company executive telling Reuters in May that the group had no plans to exit.
"They have not been in touch with banks for the last one month," said a banker with a state-run lender which has loaned money to Go First.
A third source involved in the insolvency process said while the law does not prohibit the Wadia Group from joining the process at a later stage, there was no current indication it would do so.
None of the sources wanted to be identified because they were not authorised to speak to the media. The Wadia Group did not immediately respond to a Reuters request for comment.
On Wednesday, Reuters reported Go First has received an EoI from power generation company Jindal Power. The absence of the Wadia Group from the process would limit choices for creditors to find qualified investors.
The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors, to whom the carrier owes a total of 65.21 billion rupees ($784.60 million).
While the Wadia Group was initially keen to revive the airline, they have "completely gone silent now" since a "lot of things have changed on ground," one of the bankers said, referring to the legal proceedings.
Foreign aircraft lessors of Go First are locked in a tussle with the company after they were blocked from repossessing planes due to a moratorium imposed by Indian courts.
The Indian government amended its insolvency law earlier this month to exclude leased aircraft from assets that can be frozen, but it is yet to be determined whether the amended law would apply retrospectively to Go First.