The tail fins of Go First airline, formerly known as GoAir, passenger aircrafts are seen parked on the tarmac at the airport in New Delhi, India, May 11, 2023.
Credit: Reuters Photo
New Delhi: The National Company Law Tribunal (NCLT) has granted an extension of 60 days to the grounded air carrier Go First for completing the insolvency process.
This is the fourth extension for Go First to complete the Corporate Insolvency Resolution Process (CIRP), which is struggling to find a buyer.
Earlier, the insolvency tribunal had granted an extension of 60 days on April 8, which ended on June 3, 2024.
Following this latest extension, the CIRP of GO First will come to an end on August 3, 2024.
While granting the extension, the Delhi-based NCLT bench said: "This is the final extension".
The two-member bench also came down heavily on the Resolution Professional for seeking an extension.
Counsel appearing for the RP informed the tribunal that they were seeking this extension owing to an extraordinary situation post the Delhi High Court judgment asking DGCA to deregister all of its 54 aircraft.
According to the RP, those who have shown interest in buying the airline have revised their offers and the lenders are yet to consider them, hence the 60-day extension is needed.
On February 13, the NCLT extended the deadline to complete CIRP to April 4. This was after the tribunal on November 23 last year granted an extension of 90 days, which ended on February 4.
The Insolvency & Bankruptcy Code (IBC) mandates completion of CIRP within 330 days, which includes the time taken during litigations. As per Section 12(1) of the Code, CIRP should be completed within 180 days.
However, the maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days, failing which a corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT admitted the plea of Go First -- which stopped operating flights on May 3 -- to initiate voluntary insolvency resolution proceedings.