Suspense Crime Sach Ka Dam
The National Company Law Tribunal (NCLT) has ordered the suspended board of directors of GoFirst to file a reply within three weeks on the liquidation of the debt-ridden company. The Delhi bench of NCLT on Tuesday issued a notice to the suspended management of the defunct airline company and ordered the matter to be listed for hearing in the first week of October.
GoFirst’s liquidation was requested after a suitable buyer was not found
The NCLT order came on an application filed by the resolution professional of GoFirst (formerly GoAir) under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), seeking liquidation of GoFirst because the lenders had failed to find a suitable buyer within the stipulated time frame.
The decision to liquidate Go First was taken by the majority
During the hearing on the application, Go First’s lawyer informed NCLT that the committee of creditors has decided by majority to liquidate the company. NCLT had given an extension of 60 days in June to complete the insolvency process of this defunct airline.
NCLT had accepted Go First’s insolvency petition in May last year
This was the fourth extension given to Go First to complete the debt resolution process. NCLT had accepted Go First’s bankruptcy petition on May 10, 2023. Airline company Goes First stopped operating all its flights on May 3, 2023, last year, citing a financial crisis. In May 2023, Go First’s fleet consisted of a total of 59 aircraft. These included 54 Airbus A320neo and 5 Airbus A320 aircraft.
