Go First
Go First Insolvency: Central Bank of India, 3 other lessors file applications in NCLT
Mumbai: Central Bank of India and lessors including SMBC Afro Engine Leasing, Bluesky 19 Leasing Company Limited, and Bluesky 31 Leasing Company Limited, filed fresh applications in the insolvency plea of Go First at the National Company Law Tribunal (NCLT), media reports said.
On June 15, the National Company Law Tribunal (NCLT) is expected to hear the applications of various lessors, including Jackson Square Aviation, Engine Lease Finance B.V, BOC Aviation, Central Bank of India, SMBC Afro Engine Leasing, Bluesky 19 Leasing Company Limited, and Bluesky 31 Leasing Company Limited, in relation to Go First's insolvency plea, Moneycontrol reported.
Central Bank of India, as a member of the Committee of Creditors, has filed an application to replace the interim resolution professional with a resolution professional under the Insolvency and Bankruptcy Code, 2016.
Previously, three lessors had sought exemption from the moratorium as they had terminated their leases prior to the moratorium order.
The NCLT had asked for the response of Go First's interim resolution professional regarding these applications, the report said.
Jackson Square Aviation Ireland Limited also requested an interim order to restrict the use of the aircraft until the disposal of their application, while Engine Lease Finance B.V stated their application was for the return of engines and requested the opportunity to inspect them in the interim, the said.
BOC Aviation, an aircraft lessor, has filed an application seeking exemption from the insolvency process, stating that they had terminated leases before the National Company Law Tribunal (NCLT) admitted the plea for insolvency.
The Interim Resolution Professional (IRP) argued that the aircraft are crucial to Go First's operations and that the airline cannot function as a going concern if the aircraft are taken away.
The lessors' applications are in response to the National Company Law Appellate Tribunal's (NCLAT) order on May 22, which upheld Go First's insolvency and directed the lessors to file appropriate applications at the NCLT to determine the status of leases terminated prior to the airline's admission to insolvency.
The NCLAT also granted permission to the IRP to file an application at the NCLT regarding the claims of both parties concerning the aircraft in question.
On May 10, the NCLT admitted Go First's voluntary plea for initiating the insolvency resolution process. The tribunal appointed an IRP, suspended the board, and imposed a moratorium on the airline's financial obligations.
Go First, formerly known as GoAir and founded by billionaire Nusli Wadia, filed for bankruptcy on May 2, citing faulty engines from US engine maker Pratt & Whitney, which led to the grounding of half of its fleet.
The airline has liabilities amounting to approximately Rs 11,000 crore.
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