GoFirst Insolvency: NCLAT to hear SMBC Aviation Capital’s plea tomorrow
SMBC Aviation Capital moved the National Company Law Appellate Tribunal (NCLAT) on Thursday challenging the National Company Law Tribunal (NCLT)'s order which admitted the GoFirst airlines' insolvency process.
The National Company Law Appellate Tribunal (NCLAT) hear the plea filed by Go First aircraft lessor, SMBC tomorrow, May 12, Friday. SMBC Aviation Capital moved the National Company Law Appellate Tribunal (NCLAT) on Thursday challenging the National Company Law Tribunal (NCLT)'s order which admitted the GoFirst airlines' insolvency process.
The NCLT on Wednesday admitted Go First's plea for voluntary insolvency and admitted for the initiation of Corporate Insolvency Resolution Process (CIRP) proceedings. NCLT has granted Go First protection under a moratorium from recovery by lessors and lenders, according to the news agency ANI.
NCLT, in its order, said, "We admit the plea of Go Airlines for insolvency proceedings. It said that we appoint Abhilash Lal as IRP (insolvency resolution professional)."
"The suspended board of directors will cooperate with the IRP. Suspended directors are also ordered to deposit ₹5 crore to make the immediate expenses," the order stated.
The budget airline had also canceled all the flights' operations till May 19 due to operational reasons, "Go First flights until 19th May 2023 are canceled. We apologize for the inconvenience caused and request customers."
US-based jet manufacturers Pratt and Whitney has defended itself against the budget airline's claim that P&W is responsible for the financial condition and bankruptcy, ANI reported.
The airline, owned by the troubled Wadia Group, had earlier blamed P&W for the faulty engines that led to its ongoing financial crisis and it was later forced to file an involuntary bankruptcy petition.
Jet Engines manufacturer P&W earlier also stated that Go First has a long history of missing financial commitments to Pratt & Whitney.
(With ANI inputs)
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First Published:11 May 2023, 02:00 PM IST
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