Go First Insolvency: Airline Seeks Interim Relief On Moratorium, To Restrain DGCA From Taking Adverse Action
Go First further sought a direction from the NCLT that an ad-interim relief be provided in the form of interim moratorium if NCLT doesn’t admit the plea today
Crisis-hit Go First has sought various interim directions from the National Company Law Tribunal (NCLT), including relief from an interim moratorium, restraining lessors from taking back aircraft, and regulator DGCA from taking any adverse action against the airline. The insolvency resolution proceeding of Go First Airlines is underway at the Delhi bench of the NCLT.
According to news agency ANI, Go First has asked the tribunal to appoint an Insolvency Resolution Professional (IRP). The airline said that an Insolvency Resolution Professional (IRP) should be appointed for the turnaround of the airline.
Go First further sought a direction from the NCLT that an ad-interim relief be provided in the form of interim moratorium if the NCLT doesn’t admit the plea today, the news agency reported.
Go First Airlines further informed the NCLT court that the Bank account with the consortium is frozen.
According to a PTI report, the cash-strapped airline has also sought directions to restrain aircraft lessors from taking any recovery action against the airline. They have also asked to restrain the DGCA and suppliers of essential goods and services from initiating adverse actions.
Another plea is that the DGCA, Airports Authority of India (AAI), and private airport operators should not cancel any departure and parking slots allotted to the company. The airline also wants fuel suppliers to continue supply for aircraft operations and not terminate the present contractual arrangements, the report further said.
DGCA has said, "DGCA has examined the response of Go First and has issued an order under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation."
The Wadia group-owned airline, with liabilities worth Rs 11,463 crore, has sought voluntary insolvency resolution proceedings after the airline cancelled all its flights for three days starting from May 3.
Go First has said the non-supply of engines by Pratt & Whitney resulting in the grounding of more than half of its fleet has led to the current situation.
According to the PTI report, Go First owes creditors a total of Rs 11,463 crore, including Rs 3,856 crore in default to operating creditors. According to the NCLT petition, there is Rs 2,600 crore in debt to aircraft lessors. The debt exposure to financial creditors was Rs 6,521 crore as of April 30. The airline's net loss increased from Rs 1,807.8 crore to Rs 3,600 crore in the last fiscal year. In 2020–21, there was a net loss of Rs. 1,346.72 crore.
Top Headlines
