Bankrupt airline Go First has received an additional 60-day window from the National Company Law Tribunal to complete its insolvency proceedings.
The NCLT on April 8 extended the deadline to complete Go First’s insolvency resolution process by 60 days to June 3. Prior to this extension, the deadline was April 4.
The Delhi High Court earlier this year allowed lessors to deregister and take possession of the 54 Go First planes, which has all but ended hopes of a good valuation for creditors of the defunct airline, said people with knowledge of the matter.
Following this, the resolution process of Go First hit another roadblock as EaseMyTrip’s Nishant Pitti-led Busy Bee Airways withdrew its bid to acquire the bankrupt airline. Busy Bee Airways, majority-owned by Pitti, along with SpiceJet Chief Ajay Singh, had put in a bid for Go First in February.
Go First halted its flight operations on May 3, 2023, and subsequently, its request for voluntary insolvency proceedings was approved by the NCLT on May 10, 2023. The financial difficulties leading to this decision were primarily due to ongoing issues with Pratt & Whitney engines, which had forced the grounding of many of its aircraft.
Go First owes creditors more than Rs 6,200 crore. Central Bank of India, Bank of Baroda and IDBI Bank are the secured creditors, with admitted claims of Rs 1,934 crore, Rs 1,744 crore and Rs 75 crore, respectively.
Source: Economic Times