Shutdown Go First will have to find a buyer within 60 days: NCLT extended the deadline for the insolvency resolution process of the aviation company.
The Corporate Insolvency Resolution Process (CIRP) of defunct aviation company Go First has been extended by the National Company Law Tribunal (NCLT) by 60 days. NCLT has extended its date after it was told that three parties have shown interest in buying Go First. This has been told to NCLT by the Resolution Professional (RP) of Go First.
Diwakar Maheshwari, appearing for the Resolution Professional, has filed his Expression of Interest (EoI) and deposited the earnest money. Due to this, the lenders of Go First have voted with majority in favor of going ahead with CIRP.
Companies can submit resolution plan till 15th February
According to the resolution professional, the three parties interested in buying Go First can submit their resolution plan by February 15. Last year in December 2023, it was revealed that SpiceJet, Sharjah’s Sky One Company and Africa’s Safric Investments are in the race to buy Go First.
NCLT has extended the insolvency resolution process of Go First by 60 days and this is the second time that this extension has been granted. Earlier, on 23 November 2023, NCLT had extended its date for 90 days, which was completed on 4 February. Now the deadline which has been extended by 60 days will be counted from February 4.
This extension is the last one from NCLT, as CIRP has to be completed within 330 days. If the aviation company is unable to find a buyer within 330 days, it may be liquidated.
Go first reached NCLT in May 2023
Cash-strapped airline Go First had approached NCLT last year on May 2, 2023 for corporate insolvency resolution process under Section 10. On May 10, 2023, NCLT accepted Go First’s plea and appointed a resolution professional for matters related to the company.
However, those who leased the aircraft to Go First had filed a petition in the National Company Law Tribunal (NCLAT) against the NCLT order. They said that it was wrong to take away their properties as the lease had already expired before the moratorium.
The Ministry of Corporate Affairs had issued a notification exempting aviation leases from the moratorium. Along with this, the matter was postponed due to change in the bench. However, the Directorate General of Civil Aviation (DGCA) had filed an affidavit in the Delhi High Court clarifying that the notification exempting aviation leases from moratorium under the Insolvency and Bankruptcy Code 2016 should also apply to pending cases.
