The National Company Law Tribunal on Thursday allowed an appeal by the resolution professional of Go First to extend the resolution timeline of the stressed domestic carrier by 90 days till February 4, 2024. The committee of creditors comprising representatives of Central Bank of India, Bank of Baroda and IDBI Bank had on October 17 passed a resolution to extend the resolution process by 90 days. The 180 days granted to complete the insolvency process ended on November 6. The resolution professional is yet to find a bidder for the beleaguered airline, which applied for voluntary insolvency under Section 10 of the Insolvency and Bankruptcy Code in May.
Jindal Power Ltd, the only company whose expression of interest was accepted by creditors, did not submit a bid for the insolvent airline till November 21, the last day for submission of bids. The counsel representing the resolution professional submitted that no plan has been received yet, and the CoC is contemplating the next steps, including issuance of a revised Form G for extension of the bid. “CoC is reconsidering the situation; no resolution plan has been received yet,” the counsel stated. The counsel for lessors argued that the extension should not be granted without a plan of action.
“There is nothing that the RP is showing they have achieved,” said the counsel for an engine lessor, which has leased five engines to Go First.
But the tribunal noted that the engine lessor had no locus standi in the matter.
Source: Economic Times