Go First insolvency: NCLT grants 60-day extension for resolution
Go First has been granted an additional 60 days by the National Company Law Tribunal (NCLT) to wrap up its corporate insolvency resolution process (CIRP). Go First's resolution professional (RP) told the court that they have received interest from three potential buyers, leading to a request for an extension. The latest 60-day extension marks the final relief that NCLT can provide because the CIRP must be completed within 330 days.
NCLT approves extension after unanimous CoC decision
The NCLT was informed by the RP counsel that the committee of creditors (CoC) unanimously approved the decision to seek a 60-day extension. Under the Insolvency and Bankruptcy Code (IBC), the NCLT can grant an extension of up to 60 days, which would extend the overall IBC-mandated 330-day limit. This is the final extension allowed by the NCLT, and if a takeover isn't secured within this timeframe, the airline may face liquidation.
SpiceJet has shown interest in the airline
During its insolvency proceedings, Go First has drawn interest from potential bidders. Safrik, an Africa-based company, and Sky One, an aviation firm based in Sharjah, have together expressed interest in acquiring Go First. Additionally, SpiceJet has shown interest in the airline as an alternative bidder. All interested parties have submitted bank guarantees and have formally expressed interest in acquiring the languishing airline.
Despite extension, Go First's future remains uncertain
Despite the moratorium extension, Go First's future remains uncertain, with no resolution plan surfacing in over 270 days of the insolvency resolution process. Previously, Jindal Power had shown interest but withdrew the bid after reviewing the airline's financial statements. While the extension gives Go First more time to revive, it may further postpone the return of aircraft to lessors who have sought their aircraft from various courts.
