Go First Crisis: NCLT Allows Go First Airlines' Plea Seeking Insolvency

Go First Crisis: The National Company Law Tribunal (NCLT) Delhi has passed its order on the Go First bankruptcy issue. As per official orders, the NCLT has accepted Go First's plea seeking insolvency and admits to initiation of CIRP proceedings. Further, the NCLT Delhi has granted Go First protection under moratorium from recovery by lessors and lenders.

The NCLT has also directed IRP to ensure that entity is going concern. It has directed Go First's management to pay Rs 5 crore with IRP to meet all expenses.

The NCLT order by the Delhi bench on Go First insolvency comes just days after the troubled airlines filed a plea for voluntary insolvency under the Insolvency and Bankruptcy Code (IBC). While the hearing took place last week, the NCLT reserved its order on Thursday. On May 8, two more petitions were also filed on the Go First insolvency issue. 

In addition to this, Go First airlines also sought an imposition of interim moratorium to prevent lessors from taking possession of its 26 aircrafts. 

During the NCLT hearing, senior advocate P Nagesh also reportedly informed the bench that Go First airlines' lessors had initiated steps with the Directorate General of Civil Aviation (DGCA) to take possession of their carriers. However, while the NCLT did not immediately accept or deny anything, it assured that the request would be considered.

Disclaimer: This is a developing story. Please check back for more details