Go First Receives Fourth 60-Day Extension From NCLT For Insolvency
While granting the extension, the Delhi-based NCLT bench said this was the final extension.
The National Company Law Tribunal has awarded another 60-day extension to Go First for the completion of its insolvency process. This marks the fourth and the final extension granted to the airline in its efforts to conclude the Corporate Insolvency Resolution Process, amid challenges in securing a buyer.
Previously, the insolvency tribunal had approved a 60-day extension on April 8, which concluded on June 3. With the fourth extension, the CIRP for Go First is scheduled to conclude on Aug. 3.
While granting the extension, the Delhi-based NCLT bench said this was the final extension. The two-member bench was critical of the Resolution Professional for requesting an extension.
Counsel appearing for the RP informed the tribunal that they were seeking this extension owing to an extraordinary situation, post the Delhi High Court judgment asking DGCA to deregister all of its 54 aircraft.
According to the RP, those who have shown interest in buying the airline have revised their offers and the lenders are yet to consider them, hence the 60-day extension was needed.
On Feb. 13, the NCLT extended the deadline to complete CIRP to April 4. This was after the tribunal granted an extension on Nov. 23, 2023 of 90 days, which ended on Feb. 4.
The Insolvency & Bankruptcy Code mandates completion of CIRP within 330 days, which includes the time taken during litigations. As per Section 12(1) of the Code, CIRP should be completed within 180 days.
However, the maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days, failing which a corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT admitted the plea of Go First—which stopped operating flights on May 3—to initiate voluntary insolvency resolution proceedings.
(Text input from PTI)
