The deadline for the debt resolution process i.e. insolvency process of domestic airline company Go First has been extended for the third time on Monday. The National Company Law Tribunal (NCLT) extended the insolvency process of defunct airline Go First by 60 days. In the new round, extension has been given from April 4 to June 3. A two-member Delhi-based bench of the tribunal accepted the request of the company’s resolution professional (RP) seeking extension of the deadline to complete the corporate insolvency resolution process (CIRP).
Last year an extension of 90 days was given
According to the news, earlier on February 13, NCLT had extended the deadline till April 4. Before that, on November 23 last year also, the tribunal had given an extension of 90 days. Under the Insolvency and Bankruptcy Code (IBC), the debt resolution process has to be completed within 330 days. Failing this, the debtor company is sent for liquidation. NCLT had accepted Go First’s plea to initiate voluntary insolvency resolution proceedings in May, 2023. The airline had stopped operating flights on May 3, 2023, citing financial crisis.
Who bid and who withdrew?
Jindal Power, led by billionaire Naveen Jindal, had withdrawn the bid after evaluating Go First’s financial position. SpiceJet chief Ajay Singh has made the bid in collaboration with Busy Bee Airways. Singh, chairman and managing director of SpiceJet, had said a few months ago that GoFirst had immense potential and could be repositioned to work in close coordination with SpiceJet.
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