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Informist, Wednesday, Jan. 22, 2025

 

--CONTEXT: NCLT on Mon had ordered Go First's liquidation 

--Busy Bee moves NCLAT against liquidation of Go First; hearing on Thu 

 

By Surya Tripathi

 

NEW DELHI – Busy Bee Airways Pvt. Ltd., a bidder for Go First, moved the National Company Law Appellate Tribunal against the Delhi bench of the National Company Law Tribunal's order to direct liquidation of the airline. The appellate tribunal will hear the case on Thursday.

 

On Tuesday, Busy Bee Airways had informed the tribunal that it would seek an appropriate legal remedy as it intended to submit a resolution plan for Go First. Busy Bee had withdrawn its application seeking the recall of the earlier decision of the tribunal to reserve its judgment on liquidation of the airline. 

 

The tribunal on Monday ordered the liquidation of debt-ridden airline on an application filed by its resolution professional following the decision by the committee of creditors.

 

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. 

 

Busy Bee Airways and SpiceJet Ltd.'s Chairman and Managing Director Ajay Singh had jointly submitted a bid for Go First. 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, 2024, the Delhi High Court asked the Directorate General of Civil Aviation to de-register 54 aircraft leased by Go First to its lessors. Subsequently, Busy Bee withdrew its bid for Go First. 

 

On Sept. 3, the tribunal issued a notice to the suspended management of 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.  End

 

Edited by Saji George Titus

 

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