MUMBAI- The National Company Law Tribunal (NCLT) has permitted Go First (G8) to request to include one of its vendors, Blue Mushroom Infozone, in the Corporate Insolvency Resolution Process (CIRP).
As reported by The Economic Times, the tribunal has appointed Dipti Amit Thite as the Interim Resolution.
Go First Admits Blue Mushroom in CIRP
In a significant development, the Delhi High Court has authorized crisis-hit airline Go First to conduct maintenance activities on the aircraft it has leased. The court ruling also permits lessors to inspect the planes periodically.
A division bench led by Chief Justice Satish Chandra Sharma dealt with appeals by the resolution professional (RP) appointed under the insolvency law to manage the airline. These appeals were filed against an order issued by a single judge.
The bench further clarified that the Directorate General of Civil Aviation (DGCA) is free to act on Go First’s plan for resuming operations.
According to a PTI report, a single judge had granted the lessors the right to inspect their aircraft at least twice a month and do necessary maintenance work.
This order came in response to petitions filed by several lessors, who sought the de-registration of their planes by the aviation regulator DGCA to reclaim them from the airline.
The bench noted that the DGCA estimates a minimum of 15 days to grant the required approvals for Go First to resume flying operations. In the interest of justice, the bench suggested that the single judge herself make the final decision.
“The single judge is requested to promptly decide the matter, even before the scheduled hearing on August 3. Parties may submit an application to advance the hearing date, and the single judge is urged to decide the matter expeditiously,” stated the court.
These recent developments highlight the progress made in Go First’s resolution process and Blue Mushroom Infozone’s admission as part of the Corporate Insolvency Resolution Process.
The court’s decision to allow aircraft maintenance and periodic inspections provides a ray of hope for the airline’s future operations.
Go First on Sale
A resolution professional overseeing the insolvency process for Go First (G8) has initiated the next phase by inviting an Expression of Interest (EOI) for the sale of the carrier, as reported in an advertisement in ET on Monday.
The deadline for submitting interest in the airline has been set for August 9.
Go First filed for bankruptcy protection in May, attributing the grounding of nearly half of its 54 Airbus A320neo planes to “faulty” Pratt & Whitney engines. In response, the engine company refuted the airline’s claims.
According to Indian law, the EoI process marks the formal commencement of seeking potential buyers or investors for the airline.
The publication of Form G, which relates to the invitation for EoI, is an important step towards concluding the insolvency process, stated Abhirup Dasgupta, a partner at HSA Advocates, as reported by Reuters.
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