New Delhi, May 10 (Hindustan Times). The bankruptcy petition of troubled airlines company GoFirst has been accepted by the National Company Law Tribunal (NCLT). Along with this, a bench of Chairman Justice Ramalinga Sudhakar and LN Gupta appointed Abhilash Lal as interim professional to run the debt-ridden company.
The NCLT bench, in its judgment on Wednesday, also granted protection to GoFirst from any legal action. NCLT has asked the suspended board to assist the resolution professional to run it during the insolvency proceedings. The bench asked the company to continue to operate and meet its financial obligations and not to retrench any employee.
Earlier, the tribunal had reserved its verdict on May 4 after hearing the arguments of the Wadia Group-led airline company and the entities that had leased the aircraft to GoFirst. The aircraft leasing companies had opposed the plea seeking interim protection. Go First Airline Company started flying more than 17 years ago.
Crisis-hit GoFirst has already suspended ticket sales till May 15, while all flights till May 19 have been cancelled. The company has stopped operating flights from May 3 amid financial crisis. The total liability on the airline is Rs 11,463 crore. It had sought an interim stay on financial obligations by filing an application for voluntary insolvency proceedings. More than half of the aircraft in the company’s fleet are grounded due to non-supply of engines from Pratt & Whitney.
