The grounded airline, Go First, has received an extension of 60 days from the National Company Law Tribunal (NCLT) to complete the insolvency process.
National Company Law Appellate Tribunal. (Photo: IANS)
The grounded airline, Go First, has received an extension of 60 days from the National Company Law Tribunal (NCLT) to complete the insolvency process.
This is the fourth extension to complete the Corporate Insolvency Resolution Process (CIRP) for the airline struggling to find a buyer. On April 8, the insolvency tribunal granted an extension of 60 days, which ended on June 3, 2024.
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Following the latest extension, the CIRP of GO First will end on August 3, 2024.
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A two-member bench came down heavily on the Resolution Professional for seeking an extension. The counsel appearing for the Resolution Professional informed the tribunal that they were seeking this extension in view of an extraordinary situation they were facing post-Delhi High Court judgment asking the DGCA to deregister all of its 54 aircraft.
According to the Resolution Professional, those who have shown interest in buying the airline have revised their offers and the lenders are yet to consider them, hence the 60-day extension is needed.
The NCLT, on May 10, 2023, admitted the plea of Go First, which stopped operating flights on May 3, to initiate voluntary insolvency resolution proceedings.
The Central Bank of India will auction over 94 acres of land owned by Wadia Realty situated at Bhayandarpada on Thane’s Ghodbunder Road, to recover loans extended to Go Airways. This comes after the Delhi High Court allowed lessors of Go First to deregister and take possession of 54 planes.
The airlines blamed the ‘faulty’ engines of Pratt & Whitney for its financial woe leading to the grounding of half of its fleet.
Go First’s combined liabilities to all its creditors are worth Rs 11,463 crore.
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