The NCLT (National Company Law Tribunal) on Wednesday accepted GoFirst’s plea for voluntary bankruptcy and allowed initiation of CIRP (Corporate Insolvency Resolution Process) proceedings. It also provided go first protection under moratorium from recovery by lessors and lenders. Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crisis caused by the grounding of more than half of its fleet due to unavailability of Pratt & Whitney engines.
The NCLT in its judgment said, “We accept the petition of Go Airlines for insolvency proceedings. It states that we appoint Abhilash Lal as IRP..” It also directed that the suspended Board of Directors of IRP Will cooperate with
It also ordered the suspended directors to deposit Rs 5 crore to meet immediate expenses.
“It is a historic judgment as the insolvency application has been accepted so swiftly. The order prevents a viable airline from becoming unviable. Kaushik Khona, CEO, GoFirst said, “The objective of IBC has always been a revival.