NCLT orders Go First promoters to respond on liquidation by October 4

The National Company Law Tribunal (NCLT) has mandated the suspended board of Go First to respond to a liquidation application within three weeks. This decision follows the airline's failure to secure a buyer after lenders struggled to find a suitable option. The NCLT's order comes after the Committee of Creditors voted in favor of liquidation, indicating a lack of viable alternatives for the debt-ridden airline. Previously, the Delhi High Court had ordered the deregistration of all 54 aircraft leased by Go First, further complicating the situation. The NCLT had granted multiple extensions to Go First for completing the Corporate Insolvency Resolution Process (CIRP), with the latest extension being a final 60-day period. The Insolvency and Bankruptcy Code (IBC) stipulates that the CIRP must be completed within 330 days, including any litigation time. Go First, which ceased operations on May 3, 2023, had its insolvency plea admitted by the NCLT on May 10, 2023. Despite negotiations with potential buyers, including a consortium led by EaseMyTrip CEO Nishant Pitti and SpiceJet chairman Ajay Singh, no deals were finalized. The resolution professional's application for liquidation was prompted by the inability to find a reasonable buyer within the stipulated timeframe, highlighting the challenges faced by the airline in the current economic climate. As the NCLT prepares for further hearings on October 4, the future of Go First remains uncertain, with the possibility of liquidation looming large. This situation underscores the difficulties in the aviation sector, particularly for companies burdened with significant debt and operational challenges.