NCLT seeks Go First management's response on liquidation plea, case adjourned to October 4

The National Company Law Tribunal (NCLT) on September 3 issued a notice to the suspended management of Go First, seeking their response to a liquidation plea filed by the airline's resolution professional (RP), Mint reported citing court proceedings. The tribunal has yet to rule on the liquidation request, with the next hearing scheduled for October 4.

The plea, backed by the airline's Committee of Creditors (CoC) comprising Central Bank of India, Bank of Baroda, and IDBI Bank, was filed after bids from potential resolution applicants fell short of expectations. Go First, which owes Rs 6,200 crore to creditors, has been grounded since May 2023.

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

During the hearing, the RP's counsel, Ritin Rai, highlighted the airline’s ongoing $1-billion arbitration case in Singapore against US-based engine maker Pratt & Whitney (P&W). The tribunal questioned the RP about the distribution of potential arbitration proceeds and raised concerns about third-party litigation funding, which is being used to finance the case. Go First is pursuing $1 billion from P&W, which, if granted, would be used to repay creditors and support the liquidation process.