The airline has 330 days to complete the resolution process—more than 270 of those days will be spent under the corporate insolvency resolution process—with the extended period beginning on February 4th.
The National Company Law Tribunal (NCLT) granted a 60-day extension of its moratorium on Tuesday, providing a brief reprieve for bankrupt airline Go First. The purpose of the extension was to give the airline more time to complete its corporate insolvency resolution procedure (CIRP).
Go First has been under CIRP for more than 270 days; this extension, which runs from February 4 to April 4, gives them an additional 330 days to finish the resolution process.
Go First requested further time to finalize the purchase after three potential buyers expressed interest and deposited money, according to the resolution professional (RP) managing the airline’s case.
The resolution professional’s legal counsel informed the NCLT that all of the airline’s creditors had agreed to request an extension.
As per the Insolvency and Bankruptcy Code (IBC), the NCLT has the authority to extend the procedure beyond the regular 330-day limit if required, provided that the resolution professional requests an extension of up to 60 days.
Go First was expected to have an additional 60 days to complete its bankruptcy filing, according to a February 4 article by Mint .
After the first 90-day extension expired on February 4, Go First filed this petition with the NCLT seeking an extension of the corporate insolvency provision. The extension will give ground airlines more time to rebook, but charterers who have tried to get their planes back through court rulings could see much tougher outcomes.
In May 2023, Go First filed for damages, blaming Pratt & Whitney for engine problems. Since then, the airline has faced several legal and operational challenges, including disagreements with tenants and routine changes in NCLT hearing procedures, which landed it The most recent note hearing was held in November.
Despite this suspension, the future of Go First remains uncertain, as the company has been insolvent for more than 270 days without a clear recovery plan But the bright spot is that interested parties have expressed interest and have formally commenced bidding by providing Forest with the necessary bank securities and the little-known Busy Bee.
Jindal Power, led by billionaire Naveen Jindal, took stock of Go First’s financial position and withdrew the former’s offer.
