NCLT orders Go First liquidation, appoints Venkatasubramanian as liquidator
This story was originally published at 11:19 IST on 20 January 2025
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--NCLT orders liquidation of Go First airline
--NCLT appoints Venkatasubramanian as liquidator of Go First airline
NEW DELHI – The Delhi bench of the National Company Law Tribunal on Monday ordered the liquidation of debt-ridden Go First airlines and appointed Dinkar Venkatasubramanian as its liquidator. Go First became the second airline to go into liquidation 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.
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, with secured creditors Central Bank of India, Bank of Baroda and IDBI Bank admitting 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.
On Sept. 3, the tribunal 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 had passed a resolution seeking its liquidation as the plans received by them appeared to be non-compliant.
At 1105 IST, shares of Central Bank of India were up 1.2% at INR 53.33 on the National Stock Exchange, while shares of Bank of Baroda were up 1.2% at INR 230.70 and shares of IDBI Bank were down 1.0% at INR 83.15. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Avishek Dutta
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