GoFirst airline will not be declared bankrupt, NCLAT stays NCLT order
Trouble doesn't seem to be ending for beleaguered airline GoFirst. NCLAT has heard the petition filed by the aircraft leasing companies. Let's know.
The National Company Law Appellate Tribunal (NCLAT) on Monday stayed with immediate effect the order of the ACLT allowing the beleaguered airline GoFirst to file for voluntary bankruptcy.
A two-member NCLAT bench told the aircraft lease companies opposing GoFirst's bankruptcy that if they wanted any relief, they would have to approach the National Company Law Tribunal. Also stayed the order issued by NCLT for bankruptcy on May 10, 2023, with immediate effect.
The bankruptcy of GoFirst Airline is being opposed by four aircraft lessors, including SMBC Aviation Capital Limited, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC). It was said on behalf of the companies opposing bankruptcy that it is going to harm us a lot.
On May 3, GoFirst stopped operations saying that the company did not have cash and due to this, the company was stopping its flights with immediate effect. Initially, the airline has been closed till May 5 by the company, but now its date has been extended to May 26.
While ceasing operations, GoFirst stated that the failure of Pratt & Whitney engines had caused the company to ground more than 50 percent of its aircraft and was causing losses to the company. Because of this, it is not able to meet its financial responsibilities.
