Go First, the airline owned by the Wadia Group has filed a petition before the National Company Law Tribunal (NCLT) seeking interim directions from the National Company Law Tribunal, including restraining lessors from taking back aircraft and regulator DGCA from taking any adverse action against the airline.
The company has also requested that fuel suppliers continue to supply fuel for aircraft operations and not terminate present contractual arrangements.
Go First, which has liabilities worth Rs 11,463 crore, has sought voluntary insolvency resolution proceedings, and the plea is set to be heard by the Delhi bench of the NCLT on Thursday. The airline has cancelled all flights for three days beginning May 3.
The airline has cited the non-supply of engines by Pratt & Whitney as the reason for the grounding of more than half of its fleet, leading to the current situation. Go First has total liabilities of Rs 11,463 crore to all creditors, including a default of Rs 3,856 crore towards operational creditors.
The dues towards aircraft lessors are Rs 2,600 crore, according to the plea filed before NCLT. As of April 30, the debt exposure towards financial creditors stood at Rs 6,521 crore. The airline’s net loss rose to Rs 3,600 crore last fiscal from Rs 1,807.8 crore in 2021-22. The net loss was Rs 1,346.72 crore in 2020-21.
Also Read:Reliance MET City In Haryana Is New Hub Of Economic Development