Go First will no longer fly, will repay debt by selling assets; deregistration of 54 aircraft cancelled
New Delhi|After Jet Airways, airline company Go First, which is in financial crisis, will also no longer be able to fly. The National Company Law Tribunal (NCLT) ordered the liquidation of Go First, which has airlifted hundreds of millions of people for 17 years. This means that the company will have to repay the loan by selling its assets. Due to financial problems the airline voluntarily applied for an insolvency resolution process in May, 2023. Go First’s operations have been closed for May 3, 2023, or nearly two years.
That company Go Airlines (India) Ltd., NCLT said in a 15-page order. Now the Committee of Lenders (CoC) has the authority to decide the liquidation of Go First at any time after its formation and before the resolution plan is confirmed.
The proposal for liquidation of the corporate debtor was approved by the CoC with 100 per cent voting, NCLT said. Therefore, there does not appear to be any merit in interfering with the commercial discretion of the COC. Two months before this, the Supreme Court had ordered the liquidation of Jet Airways on November 7, 2024, giving a major verdict in the insolvency proceedings case. Jet Airways last flew in April, 2019.
