A two-member bench of NCLT will decide on the fate of crisis-hit airline GoFirst. GoFirst itself had applied to the NCLT to declare itself insolvent. On May 3, the airline stopped its flights due to high debt.
The National Company Law Tribunal (NCLT) will pass its order tomorrow i.e. on Wednesday on the petition of the troubled airline GoFirst after the application made by the company to declare the country’s budget airline company GoFirst bankrupt.
A two-member bench will give its verdict tomorrow
A two-judge bench of President Justice Ramalingam Sudhakar and LN Gupta will pronounce the order on Wednesday morning and decide on GoFirst’s plea for an interim stay on its financial obligations.
NCLT had reserved the decision
On May 4, the NCLT reserved its order after hearing about Wadia Group-owned GoFirst and its aircraft lessors.
How Go first fall
Go First Airline, which has been flying for 17 years, stopped flights on May 3 due to a financial crisis caused by the unavailability of Pratt & Whitney engines. The company had filed an application with the NCLT to declare bankruptcy on its own behalf.
The airline has invested Rs 3,200 crore in the last three years and Rs 2,400 crore in the last two years, but still has liabilities of Rs 11,463 crore. It has sought voluntary insolvency resolution proceedings and an interim moratorium.
The company does not even have money to pay its operational creditors, nor does the company have money left to pay aviation fuel. Due to the increasing debt of the company, the company applied to declare itself bankrupt.
