The National Company Law Tribunal (NCLT) has given Go First, the grounded airline, another lifeline, extending its deadline by 60 days to complete the resolution process. This is now the third time the NCLT has pushed back the deadline, stretching it from April 4 to June 3.
A two-member panel of the Delhi-centered NCLT accepted the resolution professional's plea for more time to finalize the corporate insolvency resolution process (CIRP) of Go First, as per a report by PTI.
Initially, the NCLT extended the CIRP deadline to April 4 from an earlier deadline set on February 13. This decision followed a previous extension granted on November 23 last year, which provided an additional 90 days, expiring on February 4.
In May 2023, the troubled airline announced its bankruptcy, citing a combination of challenges including the impacts of the Covid-19 pandemic, rising fuel costs, and difficulties in acquiring engines. A major contributing factor to the airline's downfall was its heavy reliance on Pratt & Whitney engines.
The Insolvency & Bankruptcy Code (IBC) mandates completion of CIRP within 330 days, which includes the time taken during litigations.
As per Section 12(1) of the Code, CIRP should be completed within 180 days. However, the maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days, failing which a corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT admitted the plea of Go First, which stopped operating flights on May 3, to initiate voluntary insolvency resolution proceedings.
(With Inputs From PTI)
