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Business News/ News / Go First Insolvency: Lenders consider big four auditors for resolution professional job: Report

Go First Insolvency: Lenders consider big four auditors for resolution professional job: Report

  • The current rules say that once the committee of creditors of an insolvent company is convened post a court order, the creditors have a right to appoint a resolution professional of their choice.

FILE PHOTO: A Go First airline, formerly known as GoAir, passenger aircraft is parked at the Chhatrapati Shivaji International Airport in Mumbai, India, May 3, 2023. REUTERS/Francis Mascarenhas/File Photo

The lenders of crisis-hit Go First airlines have invited proposals from the big four accounting firms to become the resolution professional (RP), a report said.

The lenders believe that multiple firms should be evaluated for the role of RP and professionals backed by KPMG, Deloitte, EY, PwC and Grant Thornton are likely to be interviewed this week, Economic Times reported, quoting officials aware of the development.

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Go First is currently under the administration of an interim resolution professional (IRP) recommended by its former management. The NCLT had appointed Abhilash Lal, backed by Alvarez & Marsal, as Go First's IRP on May 10 when the company was admitted for insolvency proceedings.

Also Read: Go First airline says 'no definite timeline' for resumption of operations, informs DGCA

The lenders to the airline, including Bank of Baroda, Central Bank of India, IDBI Bank and Deutsche Bank, are keen to check out other options for the role of RP, the report added.

The current rules say that once the committee of creditors of an insolvent company is convened post a court order, the creditors have a right to appoint a resolution professional of their choice.

Go First filed for insolvency under Section 10 of the Insolvency and Bankruptcy Code (IBC). The company’s total dues to banks and financial institutions are around 6,000 crore. It had defaulted on payments of 2,600 crore to aircraft lessors and of 1,200 crore to vendors, as per the company’s application for voluntary insolvency in the NCLT.

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