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No objection to release 4 leased engines to lessors: Go First to NCLT

Go First got a final 60-day extension from the National Company Law Tribunal (NCLT) on June 12 to complete its corporate insolvency resolution process (CIRP)

Go First

Bhavini Mishra New Delhi

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Bankrupt airline Go First on Thursday told the National Company Law Tribunal (NCLT) that it has no objection to the release of four engines in its possession to the owner, Engine Lease Finance BV.

The Resolution Professional's (RP) counsel, Advocate Diwakar Maheshwari, told the tribunal that they had already started the process of returning one engine.

The tribunal has now ordered the release of all four engines to the lessor.

Advocate Anandh Venkatramani, appearing for the engine lessor, told the tribunal that their case could be dismissed in light of the High Court order that directed the Directorate General of Civil Aviation (DGCA) to deregister all its 54 aircraft. He added that Go First chose not to file an appeal against it, so it is final.

Meanwhile, other lessors have sought time to take instructions on the next steps in the case, and the matter will be heard again on August 9.

Go First got a final 60-day extension from the National Company Law Tribunal (NCLT) on June 12 to complete its corporate insolvency resolution process (CIRP).

This extension will last until August 3. The tribunal had told the airline’s Committee of Creditors (CoC) and the resolution professional to adhere strictly to the deadline, saying that no further extension will be granted.

The lenders of the airline include the Bank of Baroda, the Central Bank of India, and IDBI Bank.

Go First had filed for voluntary insolvency on May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC), and on May 10, 2023, the NCLT admitted its insolvency plea.

The grounded airline joins the ranks of major carriers such as Kingfisher Airlines and Jet Airways, which went to the wall in 2012 and 2019, respectively, underscoring the challenges inherent in navigating India’s aviation industry.


Mounting Trouble
 
- Go First has started the process of returning one engine already
- The airline received a 60-day extension from NCLT on June 12 to complete the insolvency process
- The lenders of the airline include the Bank of Baroda, Central Bank of India, and IDBI Bank


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First Published: Jul 11 2024 | 6:20 PM IST

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