The National Company Law Tribunal (NCLT) on Wednesday admitted Go First Airlines’ plea for insolvency proceedings and appointed Abhishek Lal as the interim resolution professional (IRP). The tribunal also imposed a moratorium on the airline’s assets.
Go First, formerly known as GoAir, is India’s second-largest budget airline. The airline has been struggling financially for some time and has been in talks with lenders to restructure its debt. However, the talks have not been successful, and the airline has now filed for insolvency.
The IRP will now have to take steps to revive the airline. This may include selling off assets, cutting costs, or finding new investors. The IRP will have a period of 270 days to complete the insolvency resolution process. If the process is not completed within this time, the airline will be liquidated.
The admission of Go First’s insolvency plea is a major blow to the Indian aviation industry. The airline is one of the largest in the country, and its failure will have a ripple effect on the entire industry. It is also a sign of the financial challenges that are facing the Indian aviation sector.
The Indian aviation industry has been hit hard by the COVID-19 pandemic. The pandemic has led to a sharp decline in passenger traffic, which has put a strain on the finances of airlines. Many airlines have been forced to cut costs and lay off employees.
The admission of Go First’s insolvency plea is a reminder of the challenges that are facing the Indian aviation industry. The industry is expected to take some time to recover from the pandemic, and it is possible that other airlines may also face financial difficulties in the future.
Here are the key details of the NCLT order:
- The NCLT admitted Go First’s plea for insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).
- The tribunal appointed Abhishek Lal as the interim resolution professional (IRP) to take over the management of the airline.
- The IRP has been given a period of 270 days to complete the insolvency resolution process.
- If the IRP is unable to find a buyer for the airline within the 270-day period, the airline will be liquidated.
- The NCLT also imposed a moratorium on the airline’s assets. This means that no one can sell or seize the airline’s assets during the insolvency resolution process.
The admission of Go First’s insolvency plea is a major blow to the Indian aviation industry. The airline is one of the largest in the country, and its failure will have a ripple effect on the entire industry. It is also a sign of the financial challenges that are facing the Indian aviation sector.
