The National Company Law Tribunal (NCLT) on Wednesday admitted Go First’s voluntary plea to initiate the insolvency resolution process against the airline.
A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta also appointed Abhliash Lal as interim resolution professional (IRP) to run the debt-ridden company.
It has put the company under the protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings.
The NCLT also directed the company to give Rs 5 crore to IRP to meet immediate expenses for the insolvency process.
Besides, NCLT also ordered to keep the company as a going concern and ensure that no employees are retrenched.
According to the order, IRP has been asked to take necessary steps including execution of the arbitral awards, keep it as a going concern and run its services smoothly.
On May 4, the NCLT reserved its order after hearing the Wadia group-owned carrier and its aircraft lessors who have opposed the petition seeking interim protection.
Go First, which has been flying for more than 17 years, stopped flights from May 3 amid a financial crunch caused by the grounding of more than half of its fleet due to the non-availability of Pratt & Whitney engines.
With liabilities worth Rs 11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
Go First has already cancelled all flights till May 19.
As many as 28 planes or more than half of the airline’s fleet are grounded due to the non-supply of engines by Pratt & Whitney (P&W).
The lessors of the carrier have opposed Go First’s plea for an interim moratorium contending that it would have “harmful and serious consequences”.
Besides, Go First is facing two more petitions seeking insolvency proceedings against it.
Source: PTI
