In a significant development, the National Company Law Tribunal (NCLT) has granted a 60-day extension for the resolution process of Go First, the troubled airline facing insolvency. The request for this extension was made by the resolution professional overseeing the corporate insolvency resolution process (CIRP), highlighting the complexity of the situation.
A two-member bench of the NCLT, based in Delhi, has accepted the plea put forward by the resolution professional, reflecting the seriousness of the challenges faced by Go First.
During the proceedings, the representative for the resolution professional revealed that three entities have expressed interest in acquiring Go First by submitting earnest money and expressing their intent. These entities—SpiceJet, Sky One from Sharjah, and Safrik Investments focusing on the African continent—are now expected to develop and submit concrete resolution plans for Go First.
This extension comes after a previous extension of 90 days granted by the tribunal in November of the previous year, which expired on February 4, underlining the prolonged nature of the resolution process.
According to the Insolvency & Bankruptcy Code (IBC), the CIRP must be concluded within 330 days, including any time consumed by litigations. Failure to meet this deadline may lead to the initiation of liquidation proceedings for the corporate debtor, highlighting the urgency of finding a resolution.
On May 10, the NCLT accepted Go First’s plea to commence voluntary insolvency resolution proceedings, which coincided with the airline halting its operations on May 3.
Meanwhile, the lenders of Go First had initially set January 31 as the deadline for financial bids to acquire the airline. However, faced with challenges in securing new investors, lenders are now considering alternative measures, including liquidation. Despite this, there is a renewed effort to engage potential suitors who have previously expressed interest, with the hope of salvaging the situation.
Additionally, Go First has reportedly established a separate entity to address concerns raised by aircraft lessors regarding non-disclosure of plane documents, a move aimed at addressing contempt petitions. The resolution professional has communicated with aircraft lessors, assuring them of the formation of this new entity, which comprises certain Go First employees tasked with collating aircraft records and documents.
The ongoing saga of Go First underscores the complexities involved in resolving the insolvency of a major airline, with multiple stakeholders and legal intricacies adding to the challenges faced.
