Liquidation Process
Go First lenders approve Venkatasubramanian as liquidator, NCLT to hear Dec 6
This story was originally published at 14:08 IST on 28 November 2024
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NEW DELHI – The counsel for resolution professional of debt-ridden Go First told the Delhi bench of the National Company Law Tribunal on Thursday that its committee of creditors has approved the name of Dinkar Venkatasubramanian to be appointed as the liquidator of the airline. The tribunal asked the counsel to amend its prayer in its petition where they had earlier sought Shailendra Ajmera as the liquidator of the airline. The tribunal will now hear the case next on Dec. 6, when it might pass a short order on liquidation of the airline.
Go First will be the second airline which will go through the liquidation process after Jet Airways (India) Ltd. On Nov. 7, the Supreme Court had ordered liquidation of the debt-ridden Jet Airways after UK's Kalrock Capital and United Arab Emirates-based entrepreneur Murari Lal Jalan failed to implement the resolution plan.
On Sept. 3, the tribunal had issued a notice to the suspended management of the debt-ridden Go First on a plea by its resolution professional seeking liquidation of the airline. The counsel for the resolution professional had told the tribunal that the committee of creditors of the airline passed a resolution seeking its liquidation as the plans received by them appeared to be non-compliant.
Go First had filed for voluntary insolvency in the face of a financial crunch due to non-supply of engines by Pratt & Whitney, which forced the airline to ground 28 of its 56 aircraft. Go First owes more than INR 65 billion to its lenders, where secured creditors Central Bank of India, Bank of Baroda and IDBI Bank have admitted claims of INR 19.34 billion, INR 17.44 billion and INR 750 million, respectively. The insolvency petition was admitted by the National Company Law Tribunal on May 10, 2023.
SpiceJet Ltd Chairman and Managing Director Ajay Singh and Busy Bee Airways Pvt Ltd had jointly submitted a bid for Go First. Another bid was from a consortium of Sharjah-based aviation company Sky One FZE and Pramod Sharma. However, the revival process of the airline was derailed after a setback from the Delhi High Court regarding its leased aircraft. In a judgement on Apr 26, the Delhi High Court had asked the Directorate General of Civil Aviation to de-register 54 aircraft leased by Go First to its lessors. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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