Go First Airline: All ways for Go First Airline to come back closed, no one came to buy, liquidation will start
Go First Liquidation: All avenues of recovery of Go First Airline, which was closed due to financial crisis, are now completely closed. The banks giving loans to the airline have voted to liquidate Go First Airline. This airline was closed in May last year itself. After this the airline had applied for bankruptcy process. Despite all efforts, after no good offers were received to buy this airline, the banks have decided to put it into liquidation.
Ajay Singh and Nishant Pitti had withdrawn their hands
At the beginning of this year, the possibilities of selling Go First Airline had become strong. Sharjah-based Sky One along with SpiceJet airline promoter Ajay Singh and EaseMyTrip CEO Nishant Pitti had expressed their desire to buy Go First. But, after some time, Nishant Pitti announced his exit from this deal and said that now his priorities have changed. After this Ajay Singh had also decided to walk out of this deal.
Go First has a debt of about Rs 6200 crore
A private bank official told Business Standard that voting has taken place on the proposal to liquidate Go First. The Committee of Creditors (COC) of the airline has decided to liquidate the company. The bids received to buy the airline were much lower than their expectations. Go First has a debt of about Rs 6200 crore. Of this, Central Bank of India has Rs 1,934 crore, Bank of Baroda has Rs 1,744 crore and IDBI Bank has Rs 75 crore.
Further action will be taken on the instructions of NCLT
He said that further steps will be taken on the instructions of the National Company Law Tribunal (NCLT). Earlier, NCLT had extended the bankruptcy process of the debt-ridden airline till August 3. It had directed the CoC and resolution professional to strictly adhere to this deadline. NCLT had already given him extension several times. Go First had applied for bankruptcy in May last year. Earlier, on April 26, Delhi High Court had directed DGCA to cancel the registration of the aircraft leased to Go First.
