Go First Airline in Trouble as NCLT to Consider 2 Insolvency Petitions

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Go First, which is facing financial difficulties, is currently waiting for a decision from the National Company Law Tribunal (NCLT) regarding its request for voluntary insolvency resolution. On Monday, the tribunal is scheduled to consider two more insolvency petitions that have been filed against the airline.

A transport services provider has filed a petition seeking approximately ₹3 crore, and a pilot has filed another petition seeking more than ₹1 crore in unpaid dues against the airline owned by the Wadia group. The airline has faced a significant financial crisis, with liabilities of ₹11,463 crore, and has therefore filed for insolvency resolution. By pursuing insolvency proceedings and seeking the protection of an interim moratorium, the airline aims to address its financial difficulties.

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In its petition submitted to the tribunal on May 2, Go First requested directions to prevent aircraft lessors from taking any recovery measures, as well as to prohibit the aviation regulator DGCA and providers of essential goods and services from initiating unfavorable actions.

The airline has also appealed for the continuation of departure and parking slots allotted to them by the Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI), and private airport operators, without any cancellations. Additionally, the airline desires that the current contractual arrangements with fuel suppliers be sustained, and fuel supplies not be halted for aircraft operations.

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On Thursday, the NCLT listened to the airline’s appeal and has kept its verdict pending. Moreover, lawyers have disclosed that the tribunal is scheduled to consider two insolvency petitions filed against the airline on Monday.

SS Associates Services Pvt Ltd, a transportation service provider for the carrier, has filed a petition regarding a claim of approximately ₹3 crore. Additionally, a pilot has submitted a petition seeking payment for their services to the airline, which amounts to over ₹1 crore. Additionally, both the petitions are set to be heard by the Principal Bench of the NCLT.

Shruti Rag