Go First crisis: NCLT approves airlines insolvency plea
Go First crisis: On May 4, the NCLT reserved its order after hearing the Wadia group-owned carrier and its aircraft lessors, who have opposed the petition seeking interim protection.
Go First crisis: The National Company Law Tribunal (NCLT) on Wednesday, May 10, 2023, approved Go First's insolvency plea. As per a report by Zee Business, Go First's board has been suspended and Abhilash Lal has been appointed as Interim Resolution Professional (IRP). Meanwhile, GoFirst's board is directed to deposit Rs 5 crore for regular expenses. The report further said that no employee will be removed from the company. All the flights of the airlines have been cancelled till May 19. Further, the report said that companies who leased their aircraft to the airline will not take back the planes.
On May 4, the NCLT reserved its order after hearing the Wadia group-owned carrier and its aircraft lessors, who have opposed the petition seeking interim protection. Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crunch caused by the grounding of more than half of its fleet due to the non-availability of Pratt & Whitney engines. With liabilities worth Rs 11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
Go First Crisis: What Happens To Your Flight Booking Money? All You Need To KnowOn May 2, Go First informed that it halted ticket booking for the next two days - May 3 to May 5 and the airline has grounded 60 per cent of its flights due to a fund crunch. Speaking to PTI, Kaushik Khona, the CEO of the company had said the airline has grounded 28 planes, more than half of its fleet, due to the non-supply of engines by Pratt & Whitney (P&W). This has resulted in a fund crunch.
"It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company," Khona had said. The airline has informed the government about the developments and will also be submitting a detailed report to the aviation regulator Directorate General of Civil Aviation (DGCA).
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