 "Go First")
The Go First Resolution Professional (RP) told the court that aircraft lessors have proposed a third-party agency to provide documentation and maintenance of the aircraft.
The RP said that certain aircraft lessors, namely SMBC Aviation Capital, Aviation Capital Group, Jackson Square Aviation, and EOS Aviation (cumulatively owning 23 aircraft), held in-person meetings with them on November 9 in Mumbai. In these meetings, the said lessors proposed a third-party agency as the MRO/CAMO (Maintenance, Repair, and Overhaul/Continuing Airworthiness Management Organisation) tasked to provide aircraft documentation and undertake maintenance of the aircraft.
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It was informed by the aforesaid lessors that once a contract is executed with the proposed MRO, a communication will be issued to the Directorate General of Civil Aviation (DGCA) seeking the required approvals to allow the said MRO to proceed with maintenance activities on the aircraft, the RP told the court.
In light of the above development, the RP said that it is surprising that the lessors who have participated in the discussions have chosen not to place the above facts on record.
The RP told the court that the discussions are moving in a positive direction and will be concluded in a week from December 11.
The RP also told the court that as of the insolvency commencement date (May 10), the number of employees on the rolls of Go First stood at approximately 4,621. However, as of October 10, 2,278 employees remain on the rolls of the company, out of which none are at present reporting to work.
The airline’s RP said that the lack of operational cash flows has made it impossible for it to retain technical professionals entrusted with the responsibility to maintain the aircraft. To address the shortage of operating cash flows and payments of salaries, etc., for June, a corpus of Rs 103 crore was provided by the Committee of Creditors (CoC).
The RP said that he has also approached various financial entities for raising interim finance to the extent of the balance amount, but the same has not yet reached fruition, on account of the inability of the airline to resume commercial operations.
Go First filed for voluntary insolvency on May 2 under Section 10 of the Insolvency and Bankruptcy Code (IBC), and on May 10, the National Company Law Tribunal (NCLT) admitted Go First’s insolvency plea.
Go First’s aircraft lessors had then filed an appeal against the NCLT order in the National Company Law Appellate Tribunal (NCLAT). The NCLAT upheld the NCLT order, and the matter was sent back to the NCLT.
Meanwhile, the lessors have also filed a case in the Delhi High Court against the Directorate General of Civil Aviation (DGCA), seeking to release their aircraft.
