Go First crisis: NCLT to hear two insolvency petitions against cash-strapped airline today
1 min read 08 May 2023, 07:20 AM ISTOne petition has been filed by a transport services provider who claims around ₹3 crore, while the other petition has been filed by a pilot who claims over ₹1 crore in unpaid dues.
PremiumAs cash-strapped Go First is awaiting a ruling from the National Company Law Tribunal (NCLT) on its plea for voluntary insolvency resolution, the tribunal is set to hear two additional insolvency petitions filed against the airline on Monday.
One petition has been filed by a transport services provider who claims around ₹3 crore, while the other petition has been filed by a pilot who claims over ₹1 crore in unpaid dues.
The Wadia group-owned airline's liabilities amount to ₹11,463 crore, and it has faced a severe financial crunch, leading to its insolvency resolution plea. The airline hopes to resolve its financial issues through insolvency proceedings and the protection of an interim moratorium.
Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain aviation watchdog 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 should not cancel any departure and parking slots allotted to the company.
The airline also wants fuel suppliers to continue supply for aircraft operations and not terminate the present contractual arrangements.
The NCLT heard the airline's plea on Thursday and has reserved its order.
NCLT to hear 2 insolvency petitions today
Meanwhile, the tribunal is set to hear two insolvency petitions filed against the airline on Monday, according to lawyers.
The petition filed by SS Associates Services Pvt Ltd, which was providing transport services to the carrier, is with respect to a claim of around ₹3 crore.
A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than ₹1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.
(With inputs from agencies)
