The National Company Law Tribunal (NCLT) extended by 60 days the deadline for completion of Go First Airline’s corporate insolvency resolution process (CIRP).
Last month, the committee of creditors (CoC) of the budget carrier had directed the resolution professional (RP) appointed for the CIRP to seek an extension of 60 days from the tribunal, as they had received expressions of interest from three prospective resolution applicants, along with earnest money.
Beleaguered Go First owes ₹6,521 crore to financial creditors, and another ₹2,660 crore and ₹1,202 crore to aircraft lessors and vendors, respectively.
This is NCLT’s second extension to Go First in the last three months.
This time, the tribunal relied on the Supreme Court’s judgment in the Essar Steel India matter, wherein the top court had struck down the word “mandatorily” appearing in Section 12 of the Insolvency and Bankruptcy Code (IBC). Section 12 mentions the timeline within which CIRP initiated under the code shall be wrapped up.
Source: Economic Times