 "Go First")
The National Company Law Tribunal (NCLT) on Wednesday admitted Go First's plea for voluntary insolvency and initiate a corporate insolvency resolution process (CIRP). It appointed Abhilash Lal as the insolvency resolution professional and asked him to keep the company as a going concern.
It has also granted Go First protection under a moratorium from recovery by lessors and creditors. The banks will not be able to recover their dues during the insolvency process.
The suspended board of directors has been asked to cooperate with the IRP.
NCLT has also asked Go First to not retrench any employee.
This is the first time an Indian airline has voluntarily sought bankruptcy protection to renegotiate its contracts and debts.
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The unprecedented move could complicate repossession efforts by lessors, which have in recent days filed requests with India's aviation regulator, the Directorate General of Civil Aviation (DGCA), for the return of about 40 Go First planes over missed rental payments.
Indian law prohibits any such recoveries once bankruptcy proceedings are initiated for a company.
Go First's lessors include major global names such as Jackson Square Aviation, SMBC Aviation Capital and CDB Aviation’s GY Aviation Leasing.
