Go First bankruptcy: NCLT extends moratorium by 60 days

The insolvent airline Go First has been granted an extended 60-day deadline by the National Company Law Tribunal to finalize its insolvency process.

On April 8, the NCLT decided to give Go First more time to complete their insolvency resolution process, extending the deadline by 60 days to June 3. Before this extension, the deadline was April 4th.

People familiar with the situation said that earlier this year, the Delhi High Court permitted lessors to deregister and reclaim the 54 Go First planes, effectively diminishing the chances of creditors of the failed airline receiving a favorable valuation.

Afterward, the resolution process of Go First faced another obstacle as Busy Bee Airways, led by Nishant Pitti of EaseMyTrip, pulled out its offer to purchase the bankrupt airline. Busy Bee Airways, which is mostly owned by Pitti, and SpiceJet Chief Ajay Singh collaborated to submit a bid for Go First in February.

Go First ceased its flying operations on May 3, 2023, and was then granted approval for voluntary insolvency proceedings by the NCLT on May 10, 2023. The main reason for this decision was financial troubles caused by continued problems with Pratt & Whitney engines, resulting in the grounding of numerous aircraft.

Go First owes more than Rs 6,200 crore to its creditors. The Central Bank of India, Bank of Baroda, and IDBI Bank are the secured creditors, with recognized debts of Rs 1,934 crore, Rs 1,744 crore, and Rs 75 crore, respectively.

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