“Lenders Vote to Liquidate Go First Airline After Low Bids Fail to Meet Expectations”
The committee of creditors (CoC) for the bankrupt airline Go First has unanimously opted for liquidation, following disappointing bids from potential resolution applicants. A senior executive from a private bank, which holds minimal exposure to the airline, confirmed that the voting process is compl
The committee of creditors (CoC) for the bankrupt airline Go First has unanimously opted for liquidation, following disappointing bids from potential resolution applicants. A senior executive from a private bank, which holds minimal exposure to the airline, confirmed that the voting process is complete, and the airline is expected to be recommended for liquidation shortly.
The decision comes after the National Company Law Tribunal (NCLT) extended Go First’s insolvency process until August 3, emphasizing that no further extensions would be granted. Despite initial interest from a consortium including SpiceJet promoter Ajay Singh, EaseMyTrip’s Nishant Pitti, and Sharjah-based Sky One, Singh and Pitti later withdrew from the resolution process.
Go First, which filed for voluntary bankruptcy in May of the previous year, owes approximately Rs 6,200 crore to its creditors. Key secured creditors include the Central Bank of India, Bank of Baroda, and IDBI Bank, with claims totaling Rs 1,934 crore, Rs 1,744 crore, and Rs 75 crore, respectively.
The airline’s challenges included disputes with lessors over aircraft repossession. Relief came on April 26 when the Delhi High Court directed the Directorate General of Civil Aviation (DGCA) to deregister planes leased to Go First within five working days, alleviating some pressure on lessors.
The liquidation process will now move forward, with the timeline depending on the legal proceedings at the tribunal.
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The committee of creditors (CoC) for the bankrupt airline Go First has unanimously opted for liquidation, following disappointing bids from potential resolution applicants. A senior executive from a private bank, which holds minimal exposure to the airline, confirmed that the voting process is compl02Who wrote it?
Sanya Baghel · Staff. 1 min read · Aug 05, 2024.03Is this sponsored?
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