INVC NEWS
New Delhi : The National Company Law Tribunal (NCLT) has granted a 60-day extension for the resolution process of the now-defunct airline, Go First. This decision comes following a plea filed by Go First, requesting an extension to finalize the corporate insolvency resolution process.
NCLT Grants Extension
A two-member bench of the NCLT, headquartered in Delhi, has approved the plea submitted by Go First to extend the deadline for completing the insolvency resolution process.
Diwakar Maheshwari, representing the Resolution Professional (RP), presented arguments stating that three parties have already expressed their interest in acquiring Go First and have deposited earnest money. These interested parties are anticipated to submit their resolution plans for Go First.
Second Extension Granted by NCLT
The initiation of the Corporate Insolvency Resolution Process (CIRP) for Go First began on May 10, 2023. Notably, this marks the second time NCLT has extended the deadline. Previously, on November 23 of the previous year, NCLT granted a 90-day extension, which expired on February 4.
Potential Buyers for Go First
Several companies have expressed interest in purchasing Go First, including SpiceJet, Sky One based in Sharjah, and Safrik Investments, a firm focused on the African continent. The Insolvency and Bankruptcy Code mandates that the CIRP must be completed within 330 days, inclusive of any time spent in litigation.
Legal Implications
According to Section 12(1) of the Code, the CIRP ideally should conclude within 180 days. However, considering potential extensions or periods of litigation, the maximum allowable time for completing the CIRP is 330 days. Failure to meet this deadline may result in the corporate debtor being subjected to liquidation.
On May 10, NCLT accepted Go First’s request to commence voluntary insolvency resolution proceedings. It’s important to note that Go First ceased its operations on May 3.
In summary, the decision by NCLT to extend the deadline for the insolvency resolution process provides Go First with additional time to navigate through this complex phase. With interested buyers stepping forward and the deadline extension, Go First’s fate remains uncertain, pending the submission and approval of a viable resolution plan that ensures its revival and viability in the competitive aviation sector.
