New Delhi: The National Company Law Tribunal (NCLT) has accepted the petition filed by Go First seeking to initiate the voluntary insolvency resolution process. Along with this, NCLT has also provided protection to GoFirst from recovery of lenders. Actually, Go First Airlines is facing financial crisis. The company's flights have been canceled till May 19.
New Delhi: The National Company Law Tribunal (NCLT) has accepted the petition filed by Go First seeking to initiate the voluntary insolvency resolution process. Along with this, NCLT has also provided protection to GoFirst from recovery of lenders. However, the NCLT has asked GoFirst to deposit Rs 5 crore with the IRP towards the initial cost of the proceedings.
Actually, Go First Airlines is facing financial crisis. The company’s flights have been canceled till May 19. Earlier, GoFirst itself had applied for Voluntary Insolvency Proceedings in NCLT. This has been accepted by NCLT. Along with this, NCLT has appointed Abhilash Lal as IRP (Interim Resolution Professional).
Accepting the appeal of Go First, the NCLT has said in its order that the authorities should ensure that all necessary assistance is provided to the IRP to allow the proceedings to go on smoothly.
Let us tell you that by issuing a statement on May 2, the airlines had suddenly canceled all their flights from May 3 to 5, then extended it till May 12. Now information has been given by Go First to stop the services till May 19.
According to the company’s website, there are 61 aircraft in the airline’s fleet. These include 56 A320 Neos and five A320CEOs. The company is losing passenger revenue at a time when a sharp increase in air traffic is being recorded after the pandemic.
According to the report, the Wadia Group airlines Go First has reached the verge of bankruptcy. The company has also given an application for Voluntary Insolvency Proceedings in NCLT.
