NEW DELHI- On Thursday, the National Company Law Tribunal (NCLT) approved a 90-day extension for Go First Airline’s Corporate Insolvency Resolution Process (CIRP), extending the period from November 6 to February 4.
This extension comes as the financially distressed carrier endeavours to rejuvenate its operations. The tribunal has instructed the resolution professional (RP) overseeing Go First’s insolvency to present a comprehensive 90-day action plan
Go First Seeks Revival
The Committee of Creditors, led by major stakeholders such as Bank of Baroda, Central Bank of India, and IDBI Bank, unanimously supports the extension of the Corporate Insolvency Resolution Process (CIRP) for the grounded airline.
This move provides a temporary reprieve for Go First, which is currently entangled in legal disputes with aircraft lessors and grappling with complications stemming from government decrees affecting asset reclamation during the moratorium.
Despite facing these challenges and encountering lukewarm interest from potential acquirers, the airline has received an expression of interest (EoI) from a prospective resolution applicant (PRA). The PRA has until November 21 to submit a formal resolution plan.
Given that the CIRP period lapsed on November 6, today’s extension was deemed necessary to accommodate the PRA’s plan submission. The resolution professional (RP) highlighted that a fresh bid process will be initiated without a resolution plan from interested parties.
Tribunal Issues Warning
The inability to Conclude CIRP within a new timeframe may Initiate liquidation proceedings.
The extension faced opposition from certain lessors, who criticized the resolution professional (RP) for a perceived lack of progress and clear strategy. In response, the RP asserted that such determinations fall under the purview of the Committee of Creditors, and lessors lack the standing to oppose it.
In parallel developments, Jindal Power, owned by billionaire Naveen Jindal, initially expressed interest but reportedly withdrew its bid after scrutinizing the airline’s financial statements.
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