Go First CoC unanimously decides to liquidate airline due to low bids
Go First owes its creditors around Rs 6,200 crore. Central Bank of India, Bank of Baroda and IDBI Bank are some of the secured creditors of the debt-ridden airline with admitted claims of Rs 1,934 crore, Rs 1,744 crore and Rs 75 crore respectively.
The committee of creditors (CoC) of defunct airline Go First has unanimously decided to liquidate the company after bids from potential applicants for a bankruptcy resolution fell short of expectations, a source familiar with the developments said.
A private bank executive with a small stake in the airline said voting on the proposal has been completed and the airline will be recommended for liquidation soon.
He added that it is difficult to give a timeline for any further proceedings as this depends on the legal process in court.
Earlier, the National Company Law Tribunal (NCLT) had extended the insolvency process of the debt-ridden airline till August 3. It had directed the CoC and the resolution professional to strictly adhere to the deadline without further extensions.
A consortium of SpiceJet promoter Ajay Singh and EaseMyTrip promoter Nishant Pitti, along with Sharjah-based Sky One, had shown interest in providing a resolution plan for the airline. However, Singh and Pitti later decided to pull out of the process.
Go First voluntarily filed for bankruptcy in May last year.
Since then, lessors have been battling with the airline, lenders and resolution experts to get possession of their aircraft.
Finally, on April 26, the Delhi High Court directed the Directorate General of Civil Aviation (DGCA) to deregister aircraft leased to Go First within five working days, providing much-needed relief to the lessors.
Go First owes its creditors around Rs 6,200 crore. Central Bank of India, Bank of Baroda and IDBI Bank are some of the airline’s secured creditors, with admitted claims of Rs 1,934 crore, Rs 1,744 crore and Rs 75 crore respectively.
First print: Aug 04, 2024 | 8:09 PM IST