Go First crisis: NCLT to hear 2 insolvency petitions on Monday
Lessors seek repossession of 20 Go First planes; NCLT reserves insolvency plea order
The embattled airline said that it was cancelling the flights due to operational reasons, adding that a full refund will be issued to the affected passengers. On Thursday, the Directorate General of Civil Aviation had directed Go First to ensure that refunds to flyers are processed on time.
With liabilities of Rs 11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations.
After hearing the plea on Thursday, the NCLT reserved its order. The tribunal is set to hear two insolvency petitions filed against the airline on Monday, according to lawyers.
The petition filed by SS Associates Services Pvt Ltd, which was providing transport services to the carrier, is with respect to a claim of around Rs 3 crore. A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than Rs 1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.
Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain the aviation watchdog and suppliers of essential goods and services from initiating adverse actions.
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Saturday, May 6, 2023 at 12:27 am