Relief for Go First, NCLT accepts insolvency plea

Go First, which is facing financial difficulties, has received some relief as the National Company Law Tribunal (NCLT) has approved the petition to begin the company’s insolvency resolution process. Abhilash Lal has been appointed as the interim resolution professional by the NCLT to oversee the operations of Go First. This move by the NCLT has brought considerable relief to the company.

When Go First faced financial difficulties, it made the voluntary decision to file for insolvency. In the hearing held on Wednesday, the Chairperson of NCLT, Justice Ramalingam Sudhakar, and LN Gupta appointed Abhilash Lal as the interim resolution professional to manage the company burdened with debt. The initiation of insolvency resolution proceedings in NCLT will provide the company with relief in repaying its debts to banks and other institutions. Abhilash Lal, as the appointed resolution professional, will make efforts to revive the airline’s operations. This action taken by NCLT has brought significant relief not only to the company’s employees, booking agents, but also to its debtors.

The bench has given the company legal protection and ordered the suspended board of directors to assist the interim resolution professional during the debt resolution process. To prevent the company from collapsing, the court has directed that the company to remain operational and financial obligations be met without laying off any employees.

Following the arguments presented by the Wadia Group’s airline and the aircraft leasing units on May 4th, NCLT has reserved its decision. The aircraft leasing companies opposed the petition and asked for interim protection.

Here is the breakdown of loans that Go First have with different banks

Amidst all this, the airlines suspended flight operations from May 3. There were some issues in supply of engines from Pratt & Whitney this impacted the operations of the company and half of its planes were unable to fly. Company has total obligations of Rs 11,463 crore with banks and other institutions. It has stopped booking tickets until May 15