Read on the application
Go to the first airline: The corporate insolvency resolution process (CIRP) of cash-strapped airline GoFirst has been extended by 90 days. The National Company Law Tribunal has extended it till February 4, 2024. The decision comes at a time when Jindal Power, the company in the race to buy GoFirst, has backed out. According to a Reuters report, Naveen Jindal-led Jindal Power has informed that it will not go ahead with its bid to acquire GoFirst.
Potential Bidders for Go First: however, Go First’s resolution professional informed the tribunal that there is a potential bidder for the airline. Let us tell you that apart from Jindal Power, North-East based airline Jetwings Airways was the only bidding company. Both these companies had given Expression of Interest (EOI) for Go First in October. Go First founder Wadia Group was also allowed to participate in the EOI process, but did not submit a bid.
How long will the process take: The Committee of Creditors (CoC) on October 17 passed a proposal to extend the resolution process by 90 days. This period started from November 6, 2023 and will continue till February 4, 2024. The NCLT said that if the airline fails to complete the resolution process within this 90-day period, it will initiate the liquidation process of the company.
Flight services are suspended from May 3
GoFirst Airline’s flight services have been suspended since May 3 and the company filed its application for Corporate Insolvency Resolution Process (CIRP) a day earlier, on May 2. The tribunal accepted GoFirst’s bankruptcy petition on May 10 and appointed a Resolution Professional (RP) to handle it.
Go First offers lenders like Central Bank of India, Bank of Baroda, IDBI Bank, Deutsche Bank Rs. 6,521 crore in debt. Go First has around Rs. 2,000 crore, the Central Bank of India declared the account a non-performing asset (NPA) in October. Bank of Baroda has a loan of 1,200 crores.