Twitter: @the_news_21
Crisis-hit airline Go First on Monday requested the National Company Law Tribunal to take an early decision on its voluntary insolvency resolution plea, saying lessors have started deregistering the carrier’s aircraft.
On May 4, after a hearing, the tribunal had reserved its order on the budget carrier’s petition.
Senior advocate P Nagesh along with Pranjal Kishore mentioned the matter in the morning before the principal bench of the tribunal headed by President Ramalingam Sudhakar.
The counsels requested the tribunal to take an early decision on its plea, saying that lessors have started deregistering the airline’s aircraft.
The bench agreed to look into Go First’s request.
Lessors have sought the deregistration of more than 20 planes and have approached the Directorate General of Civil Aviation (DGCA) after the Wadia group firm filed its voluntary insolvency resolution plea.
Go First, which has been flying for more than 17 years, has suspended the sale of tickets till May 15.
As many as 28 planes or more than half of the airline’s fleet are grounded due to non-supply of engines by Pratt & Whitney (P&W).
With liabilities worth Rs 11,463 crore and a financial crunch, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
The lessors of the carrier have opposed Go First’s plea for an interim moratorium contending that it would have “harmful and serious consequences”.
The carrier has total liabilities of Rs 11,463 crore to all creditors, including a default of Rs 3,856 crore towards operational creditors. The dues towards aircraft lessors are Rs 2,600 crore.
Besides, Go First is facing two more petitions seeking insolvency proceedings against it.
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