NCLT grants 60-Day extension to Go First's insolvency
AVIATION & AIRPORTS

NCLT grants 60-Day extension to Go First's insolvency

The National Company Law Tribunal (NCLT) granted a 60-day extension to the insolvency proceedings of the grounded airline Go First. The resolution professional (RP) informed the tribunal about three interested parties in acquiring the airline, despite objections from some lessors.

Advocate Diwakar Maheshwari, representing the RP, highlighted that all three potential buyers had submitted expressions of interest (EoIs) along with earnest money deposits. The committee of creditors (CoC), comprising lenders overseeing the insolvency process, voted overwhelmingly in favour of the extension.

The CoC, responsible for decision-making in the insolvency of Go First, is set to receive resolution plans from the three interested parties by February 15. Spicejet, Sky One Company based in Sharjah, and Safrik Investments focused on Africa have previously expressed interest in acquiring Go First.

This marks the airline's second extension, following the initial 90-day extension granted by the NCLT on November 23, 2023. The previous extension period, from November 6, 2023, to February 4, 2024, has prompted Go First to seek an additional extension until April 4, 2024.

Under the Insolvency and Bankruptcy Code (IBC), the prescribed timeline for completing insolvency proceedings is 180 days, extendable by an additional 90 days. The mandatory completion deadline, inclusive of any extensions and legal proceedings, is 330 days. Upon exceeding this timeframe, liquidation proceedings commence.

The consortium of lenders for Go First includes Bank of Baroda, Central Bank of India, and IDBI Bank. The airline voluntarily filed for insolvency on May 2, and its plea was admitted by the NCLT on May 10 under Section 10 of the IBC.

The National Company Law Tribunal (NCLT) granted a 60-day extension to the insolvency proceedings of the grounded airline Go First. The resolution professional (RP) informed the tribunal about three interested parties in acquiring the airline, despite objections from some lessors. Advocate Diwakar Maheshwari, representing the RP, highlighted that all three potential buyers had submitted expressions of interest (EoIs) along with earnest money deposits. The committee of creditors (CoC), comprising lenders overseeing the insolvency process, voted overwhelmingly in favour of the extension. The CoC, responsible for decision-making in the insolvency of Go First, is set to receive resolution plans from the three interested parties by February 15. Spicejet, Sky One Company based in Sharjah, and Safrik Investments focused on Africa have previously expressed interest in acquiring Go First. This marks the airline's second extension, following the initial 90-day extension granted by the NCLT on November 23, 2023. The previous extension period, from November 6, 2023, to February 4, 2024, has prompted Go First to seek an additional extension until April 4, 2024. Under the Insolvency and Bankruptcy Code (IBC), the prescribed timeline for completing insolvency proceedings is 180 days, extendable by an additional 90 days. The mandatory completion deadline, inclusive of any extensions and legal proceedings, is 330 days. Upon exceeding this timeframe, liquidation proceedings commence. The consortium of lenders for Go First includes Bank of Baroda, Central Bank of India, and IDBI Bank. The airline voluntarily filed for insolvency on May 2, and its plea was admitted by the NCLT on May 10 under Section 10 of the IBC.

Next Story
Products

Viva ACP Launches FR A1-Rated Honeycomb Panels for Fire Safety

Viva, Asia’s largest manufacturer and supplier of aluminium composite panels (ACP) introduced its FR A1-rated Honeycomb Panels, setting a new industry benchmark for fire safety and architectural excellence. Engineered to deliver exceptional performance, these panels combine advanced fire-resistance technology with aesthetic versatility, offering a revolutionary solution for safety-critical environments.The FR A1 rating represents the highest standard of fire resistance under the European Standard EN 13501-1, signifying non-combustibility and zero contribution to fire, smoke, or toxic emissio..

Next Story
Real Estate

Almal Real Estate Expands into Commercial, Global Markets

Almal Real Estate Development is soon to announce its upcoming expansion into new verticals and international markets as part of its strategic growth plans for 2030. The company, known for its innovative luxury residential and hospitality developments, is preparing to diversify into the commercial sector with the introduction of The Smart Space, a network of business centers in UAE featuring five-star amenities. Additionally, Almal is entering new markets in Bali and Thailand as a community developer, focusing on villa and townhouse projects.The expansion into the commercial real estate sector..

Next Story
Infrastructure Urban

NABARD Approves Rs 9.03 Billion for 127 Projects in Himachal

The Himachal Pradesh government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for 127 projects worth Rs 9.03 billion for the 2024-25 fiscal, Chief Minister Sukhvinder Singh Sukhu announced. During a meeting with MLAs from Kangra, Kullu, Kinnaur, Solan, Chamba, Bilaspur, and Lahaul-Spiti districts to discuss priorities for the 2025-26 budget, Sukhu said the approved projects include 50 MLA-priority schemes under the Public Works Department, valued at Rs 4.12 billion, and 23 MLA-priority schemes under the Jal Shakti Vibhag, costing Rs 1.79 billio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?