Go First likely set for liquidation as creditors unanimously decide to end insolvency process: Report

The Committee of Creditors (CoC) for the now-defunct airline Go First has unanimously decided to proceed with liquidating the company, as bids from prospective resolution applicants did not meet expectations, a source familiar with the matter told Business Standard.

A senior executive from a private bank, which holds a minor stake in the airline, confirmed to Business Standard that the voting for the liquidation proposal has concluded, and the recommendation for liquidation will be submitted shortly. He noted, however, that the timeline for further actions will hinge on the legal proceedings at the tribunal.

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The National Company Law Tribunal (NCLT) had previously extended the insolvency resolution process for the debt-ridden airline until August 3. The NCLT had directed the CoC and the resolution professional to adhere strictly to this deadline, with no further extensions permitted. A consortium comprising SpiceJet promoter Ajay Singh, EaseMyTrip promoter Nishant Pitti, and Sharjah-based Sky One had initially shown interest in submitting a resolution plan for Go First. However, Singh and Pitti subsequently withdrew from the process.