GoFirst, an airline company caught in financial crisis, will also not be able to fly anymore. The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of GoFirst, which had been providing air travel to millions of people for 17 years.
After Jet Airways, the airline company Go First, which is facing financial crisis, will also not be able to fly now. The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of Go First, which provided air travel to crores of people for 17 years. This means that the company will have to repay its debt by selling its assets. Due to financial problems, the airline company had voluntarily applied for bankruptcy resolution process in May 2023. Go First’s operations have been closed since May 3, 2023, i.e. for almost two years.
In a 15-page order, the NCLT said it is ordering the liquidation of the company Go Airlines (India) Ltd. Now the Committee of Creditors (CoC) has the power to decide on the liquidation of Go First at any time after its formation and before the confirmation of the resolution plan.
NCLT said, the proposal for liquidation of the corporate debtor was approved by the CoC with 100 per cent voting. Therefore, there appears to be no merit in interfering with the commercial discretion of the CoC. Two months earlier, the Supreme Court had ordered the liquidation of Jet Airways on November 7, 2024, giving a major verdict in the bankruptcy proceedings case. Jet Airways last flew in April 2019.
Liquidator appointed, to submit report within 75 days
NCLT has appointed Dinkar Thiruvananthapuram Venkatasubramanian as liquidator who has been asked to continue investigating the financial affairs of the corporate debtor. According to the order, the liquidator will also have to follow up pending applications for their disposal during the liquidation process. The liquidator will have to submit an initial report to the NCLT within 75 days.
Debt resolution process could not move forward
During the bankruptcy resolution process, at least two bidders, SpiceJet chief Ajay Singh along with Busy Bee Airways and Sharjah-based airline Sky One, had emerged. Nishant Pitti, co-founder of travel portal EaseMyTrip, is a majority shareholder in Busy Bee Airways. However, the debt resolution process could not move forward. After this, NCLT has ordered the liquidation of Go First.
Registration of 54 aircraft cancelled
During the bankruptcy process, the Directorate General of Civil Aviation (DGCA) also cancelled the registration of 54 aircraft of Go First. The airline started domestic operations in 2005-06 with its first flight from Mumbai to Ahmedabad. International flights were started in 2018-19.
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