Go First was given bankruptcy protection by the National Company Law Tribunal's (NCLT) New Delhi court, giving the nation's third-largest carrier a chance at survival. In order to take over the administration and board of Go First, it has recruited Abhilash Lal of Alvarez & Marsal as the interim resolution professional. It also directed the company’s suspended board to cooperate with Lal to ensure there are no employee layoffs. Go First, founded by textile tycoon Nusli Wadia, has 7,000 staff.
It also mandated a halt to all leases and assets of the carrier. Go First has found the biggest relief from NCLT's prohibition on "recovery of any property by an owner or lessor, where such property is occupied by or in the possession of the corporate debtor."
A big lessor, SBMC Aviation Capital, is learned to have already challenged this order in NCLAT and others could do the same. Go First has 55 aircraft in its fleet. The airline had blamed US engine maker Pratt & Whitney for its financial crisis, which led it to file for bankruptcy protection.
After the resolution professional takes charge of Go First’s affairs, he will have to call for claims from creditors for the purpose of constitution of the committee of creditors, said Dhir and Dhir Associates’ associate partner Ashish Pyasi. “Simultaneously, he will have to ensure that the company remains a going concern and business operations continue so that there is a maximisation of value of assets. '' Pyasi said the resolution professional will also have to expedite the other process related steps so that resolution plans can be called at the earliest.