Go First to be liquidated as NCLAT rejects revival plea; Busy Bee Airways may bid for assets

Go First to be liquidated as NCLAT rejects revival plea; Busy Bee Airways may bid for assets

Grounded airline Go First is set for liquidation after the National Company Law Appellate Tribunal (NCLAT) upheld an earlier ruling by the National Company Law Tribunal (NCLT). The decision paves the way for creditors to recover dues amounting to Rs 6,521 crore, according to Bar & Bench.

Busy Bee Airways, promoted by EaseMyTrip co-founder Nishant Pitti, had challenged the liquidation, arguing that Go First’s airline licence and other assets could still hold value for revival. However, the appellate tribunal dismissed this plea, clearing the way for liquidation.

Despite this, the NCLAT has allowed Busy Bee Airways to submit a fresh bid to acquire Go First’s remaining assets, according to CNBC-TV18. The final decision on asset distribution will now lie with the liquidator and the airline’s creditors.

Another bid, from Sky One Airways, led by Jaideep Mirchandani, was withdrawn after an April 2024 Delhi High Court order allowed lessors to repossess all 54 leased aircraft, effectively making Go First unviable.

The NCLAT also dismissed a plea from Mumbai-based trade union Bhartiya Kamgar Sena, which opposed the liquidation, citing concerns for nearly 5,000 employees who would be left without recourse. The union had urged the tribunal to keep the airline operational until arbitration proceedings with US-based engine supplier Pratt & Whitney concluded in Singapore, according to a Mint report.

Go First, formerly known as GoAir, filed for insolvency in May 2023 due to financial troubles caused primarily by engine supply disruptions. The airline owes Rs 6,521 crore to a consortium of lenders, including Central Bank of India (Rs 1,987 crore), Bank of Baroda (Rs 1,430 crore), Deutsche Bank (Rs 1,320 crore), and IDBI Bank (Rs 58 crore).

With the liquidation process now in motion, Busy Bee Airways is expected to submit a fresh proposal for acquiring Go First’s remaining assets.