Go First – NCLT Update: Wednesday is going to be very important for Go First. The National Company Law Tribunal (NCLT) will give its verdict on the application of GoFirst, an airline surrounded by financial crisis, to declare itself bankrupt. According to the information available on the NCLT website, a bench of Justices Ramalingam Sudhakar and LN Gupta will pronounce its verdict on GoFirst’s application on Wednesday morning. NCLT had reserved its decision after hearing the petition of Go First.
Wadia Group’s airlines GoFirst last week filed an application for Voluntary Insolvency Resolution before the NCLT to declare itself bankrupt. However, the companies providing aircraft on lease to the airline are opposing it. On Wednesday, the NCLT bench will also decide on the airline’s application seeking an interim stay on its financial liabilities. It has liabilities of about Rs 11,463 crore.
GoFirst said that half of its aircraft are unable to fly due to frequent interruptions in engine supply from Pratt & Whitney, due to which the company is not able to meet its financial obligations. According to the airlines, it has been forced to approach the NCLT for insolvency resolution. For this, the company has given the biggest reason for not getting the engine from the engine supplier company P&W.
GoFirst India Limited said, about 50 percent of our aircraft have been grounded due to engine problems. Apart from this, GoFirst has lost revenue of Rs 10,800 crore due to doubling of operation cost. The airline said that in the current situation, the company is no longer in a position to meet its financial obligations, hence an application has been filed before the NCLT.
GoFirst said that Rs 6,500 crore has been infused so far by promoters, of which Rs 2,400 crore has been infused in the last 24 months. In April 2023 itself, the promoter group has infused Rs 290 crore into the airline. At present, GoFirst has canceled flights till May 12, then DGCA has also ordered GoFirst to stop booking tickets.
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