Go First’s Pledged Land to be Sold at Auction

The creditors of Go First Airlines have decided to conduct an auction for a 94-acre land parcel located in Thane near Mumbai, which was held as collateral. The reserve price for the property has been set at approximately INR 1,960 crore.

The formal auction process is anticipated to commence this week, following the release of advertisements in newspapers. This development occurs in the context of diminishing prospects for the airline’s revival following the Delhi High Court’s ruling permitting lessors to deregister and repossess 54 Go First planes. Prospective bidders will be afforded a period of approximately 60 days to submit offers for the land.

The land parcel, situated in a prime area in Thane, has been independently valued by lenders at around INR 1,200 crore. However, factoring in its future development potential and cash flows, the valuation is expected to rise to a minimum of INR 2,500 crore.