Bankruptcy process of Go First started, the company sought proposals publicly
On May 2, Go First airline filed for voluntary insolvency proceedings in the National Company Law Tribunal (NCLT) citing huge revenue loss due to non-supply of aircraft engines by US engine maker Pratt & Whitney, and the court today Means the petition has been accepted on 10th May.
Go First's (RP) Shailendra Ajmera on Monday invited an Expression of Interest (EOI) for the grounded airline. They said in a public notice that the last date for submission of EOIs is August 9, 2023, while the final list of eligible potential resolution applicants (RPAs) will be announced on August 19. According to the notice, the last date for submission of objections on the provisional list is August 24. What is the whole news, let's know.
On 2 May, Go First airline filed for voluntary insolvency proceedings in the National Company Law Tribunal (NCLT), citing huge revenue losses due to non-supply of aircraft engines by American engine maker Pratt & Whitney, and the court Today i.e. on May 10, the petition has been accepted. GoFirst has suspended flight operations since May 3 amid a financial crisis due to the grounding of more than half of its fleet due to the unavailability of Pratt & Whitney engines. As per the notice, the airline has around 4,200 employees.
According to public information, the revenue from operations in the financial year ending March 2022 was Rs 4,183 crore and according to the airline, GoFirst has liabilities of Rs 11,463 crore on its balance sheet. In early June, a Go First Committee of Creditors (CoC) comprising the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank was formed to expedite the sale process.
The airline had submitted the CoC-approved revival plan to the aviation safety watchdog Directorate General of Civil Aviation (DGCA) late last month, seeking a go-ahead. The DGCA ordered a special safety audit by a team of its experts to be carried out at its facilities in Mumbai and Delhi from July 4-6 before allowing flight operations to resume. The report of DGCA is expected to come this week.
