Go First seeks urgent order from NCLT as lessors move to repossess aircraft

The Wadia Group-owned airline filed a voluntary insolvency petition citing a severe cash crunch

Stalled domestic carrier Go First has approached the National Company Law Tribunal (NCLT), seeking orders on its plea for moratorium. The cash-strapped airline has cited urgency as the tribunal had on May 4 reserved its order on the issue.

Go First has informed the NCLT that it has received notices from lessors for termination, and has also moved the Directorate General of Civil Aviation (DGCA) in this matter.

“Lessors are beginning to take possession when NCLT is seized of the case. We are not being allowed access for maintenance work,” the company has told the tribunal, CNBC-TV18 reported.

Also Read | GoFirst fleet may fly out of reaches for lessors if bankruptcy code kicks in

Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain aviation watchdog DGCA and suppliers of essential goods and services from initiating adverse actions.

Another request is that the DGCA, Airports Authority of India (AAI) and private airport operators should not cancel any departure and parking slots allotted to the company.

The airline also wants fuel suppliers to continue supply for aircraft operations and not terminate the present contractual arrangements.

Also Read | Wadia Group considering a one-time settlement offer for Go First

Notably, as Go First awaits the NCLT ruling on its voluntary insolvency resolution plea, the tribunal is also set to hear two petitions seeking insolvency proceedings against the crisis-hit airline, today on May 8.

With liabilities of Rs 11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations.
After hearing the plea on May 4, the National Company Law Tribunal (NCLT) reserved its order. The tribunal is set to hear two insolvency petitions filed against the airline on today, according to lawyers.