In a bid to secure a revival and navigate the intricacies of insolvency resolution, Go First, the airline formerly known as GoAir, is gearing up to seek a 60-day extension from the National Company Law Tribunal (NCLT). The airline, which faced financial challenges attributed to Pratt & Whitney engine failures, has encountered hurdles during its insolvency proceedings. While it approaches this crucial extension, potential suitors have emerged, injecting a glimmer of hope into its uncertain future.
The Insolvency Journey:
Go First filed for bankruptcy protection in May 2023, citing engine failures as the primary cause of its financial distress. The NCLT granted an initial 90-day extension, which concluded on February 4. The impending decision on the sought-after 60-day extension, if approved, could be the final window for the airline’s resolution professional to devise a viable revival strategy.
Potential Suitors Emerge:
Amidst the turbulence of insolvency proceedings, Go First has attracted interest from potential investors. SpiceJet promoter Ajay Singh, Sharjah-based Sky One, and the relatively lesser-known Busy Bee have submitted formal expressions of interest, backed by a Rs 5-crore bank guarantee. These entities are positioning themselves as potential rescuers, aiming to revive the grounded airline.
Challenges and Lessor Concerns:
While Go First seeks a prolonged resolution, its lessors grapple with the extended grounding of their assets. Lessors have pleaded for the immediate repossession of aircraft and engines due to the uncertainty surrounding the airline’s future. The additional 60-day extension, if granted, could exacerbate the financial strain on lessors, intensifying concerns within the aviation industry.
Awaiting NCLT Decision:
As the insolvency resolution unfolds, stakeholders, including potential buyers, lessors, and the broader aviation industry, eagerly await the NCLT’s decision on the sought-after extension. The resolution professional faces the challenging task of formulating a plan that aligns with regulatory frameworks and satisfies creditors and lessors.
