Go First Airline may be declared bankrupt tomorrow, NCLT bench will pronounce verdict on Wednesday
Go First Crisis: A two-member bench of NCLT will decide on the fate of crisis-hit airline GoFirst. GoFirst itself had applied to the NCLT to declare itself insolvent. On May 3, the airline stopped its flights due to high debt.
The National Company Law Tribunal (NCLT) will pass its order tomorrow i.e. on Wednesday on the petition of the troubled airline GoFirst after the application made by the company to declare the country's budget airline company GoFirst bankrupt.
According to the tribunal's Wednesday's cause list, a two-judge bench comprising President Justice Ramalingam Sudhakar and LN Gupta will pronounce the order on Wednesday morning. Further, this bench will decide on GoFirst's plea seeking an interim stay on its financial obligations.
On May 4, the NCLT reserved its order after hearing about Wadia Group-owned GoFirst and its aircraft lessors.
Go First Airline was earlier also known as Go Air. The company itself had filed an application with the NCLT to declare bankruptcy on its own behalf. Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crisis following the grounding of more than half of its fleet due to the unavailability of Pratt & Whitney engines.
Its promoters had invested a whopping Rs 3,200 crore in the last three years and Rs 2,400 crore in the last two years. Still with liabilities of Rs 11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
The company does not even have money to pay its operational creditors, nor does the company have money left to pay aviation fuel. Due to the increasing debt of the company, the company applied to declare itself bankrupt.
