The National Company Law Tribunal has granted Go First’s application to initiate Corporate Insolvency Resolution Process (CIRP) proceedings following the company’s voluntary insolvency.
Moratorium from lessors and lenders is granted by NCLT to Go First.
The budget airline, now known as Go First, blames the grounding of almost half of its 54 Airbus A320neos on “faulty” Pratt & Whitney engines.
Raytheon Technologies, which produces the engines in the United States, has dismissed the charges as baseless.
To renegotiate contracts and debts, the Indian airline has filed for bankruptcy for the first time ever.
Lessors have recently filed petitions with the aviation regulator for the return of about 40 Go First planes due to missed rental payments, and this unprecedented move could hamper repossession attempts.