NCLT grants Go First bankruptcy protection
Besides, NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched
The National Company Law Tribunal (NCLT) on 10 May agreed to grant Go First protection under moratorium from recovery by lessors, lenders.
A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta also appointed Abhliash Lal as interim resolution professional (IRP) to run the debt-ridden company.
It has also put the company under protection of moratorium and directed the suspended board of directors to deposit ₹5 Crores to make the immediate expenses.
Besides, NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched.
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 from May 3 amid financial crunch caused by grounding of more than half of its fleet due to non-availability of Pratt & Whitney engines.
With liabilities worth ₹11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
In another news, the airline has further suspended the sale of tickets till 19 May.
As many as 28 planes or more than half of the airline's fleet are grounded due to the non-supply of engines by Pratt & Whitney (P&W). The lessors of the carrier have opposed Go First's plea for an interim moratorium contending that it would have "harmful and serious consequences". Besides, Go First is facing two more petitions seeking insolvency proceedings against it.
