 "Go First")
The National Company Law Tribunal (NCLT) on Tuesday extended the insolvency process of grounded airline Go First by 60 days.
This comes after the resolution professional (RP) of the airline told the tribunal that three parties have expressed interest in taking over the carrier. But some lessors have objected to this extension.
Appearing for the RP, advocate Diwakar Maheshwari told the tribunal that all the three parties had deposited ‘earnest money’ after submitting their expressions of interest (EoIs). And, the airline's committee of creditors (CoC) had voted by an overwhelming majority to extend the insolvency process.
CoC is a committee of lenders that makes decisions in the insolvency process of a corporate debtor (Go First in this case).
The three parties that have expressed interest in the airline are expected to submit their resolution plan for the airline’s revival by February 15.
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It was earlier reported that Spicejet, Sharjah-based Sky One Company, and Africa-focused Safrik Investments had shown interest in Go First. This is the second extension sought by Go First. The NCLT, on November 23, 2023, extended the insolvency process of Go First by 90 days.
The extension started on November 6, 2023, and ended on February 4, 2024. Now, Go First has sought an extension from February 4 to April 4, 2024.
Under the Insolvency and Bankruptcy Code (IBC), the insolvency process should be completed within 180 days or the extended period of 90 days. It must be mandatorily completed within 330 days, including any extension and the time taken for legal proceedings.
After the exhaustion of this timeline, the liquidation proceedings start.
The lenders of the airline include Bank of Baroda, Central Bank of India, and IDBI Bank.
Go First filed for voluntary insolvency on May 2 under Section 10 of the IBC, and on May 10, the NCLT admitted its insolvency plea.
