NCLT Approves Extension for Go First’s Insolvency Resolution

NCLT Approves Extension for Go First's Insolvency Resolution/The Hindustan Times

VoM News Desk | April 8, 2024 | 01:48 PM IST | Travel | Follow on Google News

NCLT Approves Extension for Go First’s Insolvency Resolution

NCLT Approves Extension for Go First’s Insolvency Resolution

The National Company Law Tribunal (NCLT) has granted a 60-day extension for Go First’s moratorium, extending the airline’s corporate insolvency resolution process (CIRP) until 3 June. This decision aims to provide Go First with additional time to finalize its resolution process, approved in consideration of stakeholders’ interests.

Previously, Go First received an extension until 4 June, stretching its resolution timeline to 330 days. The resolution professional sought another extension, which was unanimously approved by the committee of creditors (CoC) comprising Central Bank of India, Bank of Baroda, and IDBI Bank Ltd.

Under the Insolvency and Bankruptcy Code (IBC), the NCLT can allow extensions of up to 60 days beyond the standard 330-day limit if deemed necessary, as per a Supreme Court ruling in the Essar Steel case.

Two resolution plans are currently being finalized for Go First, with the tribunal instructing the resolution professional to complete the process within the extended period. The airline, formerly backed by the Wadia Group, filed for insolvency on 2 May 2023, and has since faced legal and administrative challenges, including disputes with lessors and scheduling issues with the NCLT hearings.

Refrence Source: Mint

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.