Go First got 60 more days to find a buyer, know which company showed interest

By Sudhakar Yadav February 13, 2024 5:00 PM IST
Even after more than 270 days have passed in the bankruptcy process, no clear solution scheme is visible - India TV Paisa
Photo:FILE Even after more than 270 days have passed in the insolvency process, no clear resolution scheme is visible.

The deadline to complete the resolution process of long-defunct domestic airline company Go First (formerly Go Air) has been extended by 60 days. The National Company Law Tribunal (NCLT) has taken this decision on Tuesday. For this the airline had applied to NCLT. According to Bhasha news, a two-member Delhi-based bench of NCLT accepted the plea of ​​the resolution professional (RP) of Go First, seeking extension of the deadline to complete the corporate insolvency resolution process (CIRP).

Go First is going through the resolution process

According to the news, Diwakar Maheshwari, appearing for the resolution professional, argued that so far three parties have shown their interest for Go First. Earnest money has also been deposited. These companies are expected to receive resolution plans for Go First. The company is going through the resolution process from May 10, 2023. NCLT had earlier given an extension of 90 days on November 23 last year, which ended on February 4. Budget airline provider SpiceJet, Sharjah-based Sky One and African continent-focused company Safric Investments have shown interest in buying Go First.

Airline embroiled in legal and administrative hurdles

Go First had filed this plea in NCLT for extension of the corporate insolvency resolution process after completing its initial 90-day extension. Go First declared bankruptcy in May 2023, blaming Pratt & Whitney’s engine failures. Since then, the airline has been embroiled in legal and administrative hurdles, including disputes with lessors and frequent changes in the NCLT hearing schedule.

GoFirst’s future hangs in the balance, with no clear resolution plan in sight even after more than 270 days in the insolvency process. Still, there is hope that buyers will emerge. The previous bid by billionaire Naveen Jindal-led Jindal Power was withdrawn after evaluating Go First’s financial position, Livemint reported.

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