The National Company Law Tribunal (NCLT) extended the Corporate Insolvency Resolution Process (CIRP) of Go First, the grounded airline, by 60 days on February 13. This extension came after three parties expressed interest in acquiring the carrier.
The Resolution Professional (RP) informed the NCLT that three entities had shown interest in taking over Go First. Diwakar Maheshwari, representing the RP, stated that all three parties had deposited earnest money and submitted their expression of interest. Consequently, the airline’s lenders voted overwhelmingly to extend the CIRP. The three interested parties are expected to submit their resolution plans to revive the airline by February 15.
Earlier, in December 2023, reports indicated that SpiceJet, Sky One company based in Sharjah, and Safrik Investments focused on Africa had expressed interest in acquiring Go First.
This extension is the second granted to the airline since it entered the insolvency resolution process in May 2023. Previously, on November 23, 2023, the NCLT extended the process by 90 days until February 4. The 60-day extension, starting from February 4, marks the final extension the NCLT can grant as the CIRP must be completed within 330 days. If no buyers are found within this period, liquidation is the likely outcome.
Go First’s insolvency proceedings at NCLT began on May 2, 2023, when it filed a plea under Section 10. The NCLT admitted the plea on May 10 and appointed a resolution professional to manage the company’s affairs.
However, Go First’s aircraft lessors contested the NCLT order in the National Company Law Appellate Tribunal (NCLAT), arguing that their assets were unfairly seized as they had terminated leases before the moratorium.
In response, the corporate affairs ministry issued a notification exempting aviation leases from the moratorium, and the case was deferred due to a change in the bench.
Subsequently, the Director General of Civil Aviation (DGCA) submitted an affidavit in the Delhi High Court clarifying that the exemption for aviation leases from the moratorium under the Insolvency and Bankruptcy Code, 2016 should apply to pending cases as well.
