Crisis-hit airline Go First’s plea for voluntary insolvency has been admitted by the NCLT (National Company Law Tribunal), and the request to begin CIRP (Corporate Insolvency Resolution Process) proceedings is also admitted. Go First is protected by the NCLT’s moratorium from recovery by lessors and lenders.
The low-cost carrier, which recently changed its name to Go First, has claimed that the “faulty” Pratt & Whitney engines that grounded about half of its 54 Airbus A320neos were the cause of its financial crisis. The US engine manufacturer, a division of Raytheon Technologies, has deemed the allegations ‘unsubstantiated’.
The first voluntary bankruptcy filing by an Indian airline was made in order to renegotiate its contracts and debts.
The unprecedented action could make it more difficult for lessors to retrieve their aircraft, who recently requested the return of about 40 Go First planes due to late rental payments from the aviation regulator.
Also Read: IPL Betting Ring: ED Searches Locations Of Gujarat Bookie Anil Jaisinghani