NCLT extends Go First's bankruptcy settlement by sixty days

NCLT extends Go First's bankruptcy settlement by sixty days

Three parties have shown interest in purchasing Go First and have paid earnest money, the resolution specialist informed NCLT.

NCLT grants Go First yet another reprieve

After learning that three companies were interested in acquiring the airline Go First, the National Company Law Tribunal (NCLT) on February 13 stretched the company's corporate insolvency resolution procedure (CIRP) by sixty days.

Three parties have shown interest in purchasing GoFirst so far, the airline's resolution professional (RP) informed NCLT.

Diwakar Maheshwari, appearing on behalf of RP, said NCLT that because all three parties had submitted the earnest money after the submission of their expressions of interest, the lenders to the airline had overwhelmingly voted in favor of extending the CIRP Is. By February 15, these three parties are supposed to provide their resolution plan to bring the airline back to life, according to RP.

The low-cost carrier SpiceJet from India, the Sharjah-based Sky One Company, and the Africa-focused Safric Investments have all shown interest in buying Go First in December 2023.

After the airline began the insolvency resolution procedure in May 2023, this is its second prolongation. The NCLT granted an extension of 90 days till February 4 on November 23, 2023.

The 60-day postponement will begin on February 4. With 330 days left to finish the CIRP, this is the last extension that NCLT may provide the airline.

The airline will probably enter liquidation if, after 330 days, it still cannot find a buyer.

Become insolvent in NCLT first

Go First sought inclusion in the corporate bankruptcy resolution process on May 2, 2023, by submitting a petition under Section 10 of the NCLT. On May 10, NCLT granted the petition and appointed a resolution specialist to manage the business.

Nonetheless, Go First's aircraft lessors appealed the NCLT ruling to the National Company Law Appellate Tribunal (NCLAT). It claimed that since they had ended their leases ahead of the moratorium, their properties had been unfairly seized from them.

Aircraft leases are free from the moratorium according to a statement from the Ministry of Corporate Affairs. A change in the bench also resulted in the issue being postponed.

before order to explain that the announcement under the Insolvency and Bankruptcy Code, 2016 omitting aviation leases from moratorium ought to pertain to the ongoing cases, the Directorate General of Civil Aviation (DGCA) submitted an affidavit before the Delhi High Court.