NCLT to hear two insolvency petitions filed against Go First on May 8

While Go First awaits the NCLT’s ruling on the application for a voluntary bankruptcy resolution, the court is scheduled to hear two petitions seeking bankruptcy action against the crisis-hit airline on Monday.

With liabilities of Rs. 11,463 crore and a financial crisis, the airline owned by Wadia Group has sought voluntary insolvency settlement actions as well as a temporary moratorium on financial liabilities.

After hearing the petition on Thursday, the National Corporate Law Tribunal (NCLT) reserved its order.

The court is scheduled to hear the two bankruptcy petitions for the airline on Monday, according to the lawyers.

The petition filed by SS Associates Services Pvt Ltd, which was providing haulage services to the carrier, relates to a claim of about Rs 3 crore.

A pilot also filed a petition claiming dues for his services rendered to the airline. The amount involved is more than Rs 1 Crore. Both petitions are scheduled to be heard by the NCLT’s Main Board.

Go First, in its petition to court on 2 May, sought guidance to prevent aircraft lessors from taking any recovery actions as well as to restrict the aviation regulator DGCA and suppliers of essential goods and services from initiating adverse actions.

Another request is that the Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI) and private airport operators must not cancel any airline departure and parking slots.

The airline also wants fuel suppliers to continue supplying aircraft operations and not terminate existing contractual arrangements.

Go First has canceled all flights through May 9.

(Only the title and image for this report may have been reworked by the Business Standard staff; the rest of the content is generated automatically from a shared feed.)

First published: May 05, 2023 | 9:27 PM ist