NCLT extends Go First resolution process deadline by 60 days

Go First resolution process: The National Company Law Tribunal (NCLT) in New Delhi has granted an additional 60-day extension to complete the resolution process for grounded airline Go First. The decision came after a plea was filed by the resolution professional (RP) of Go First, seeking more time to conclude the corporate insolvency resolution process (CIRP).

Diwakar Maheshwari, representing the RP, informed the two-member bench of the Delhi-based NCLT that three parties have submitted their expression of interest for acquiring Go First and have also deposited the earnest money. These firms are now expected to submit their resolution plans.

This extension marks the second granted by the NCLT, following a previous extension of 90 days that ended on February 4. The three firms showing interest in purchasing Go First include budget carrier SpiceJet, Sharjah-based Sky One, and African continent-focused firm Safrik Investments.

The Insolvency & Bankruptcy Code (IBC) mandates the completion of the CIRP within 330 days, inclusive of any time taken during litigations. According to Section 12(1) of the Code, the CIRP should ideally be completed within 180 days. However, if the process exceeds 330 days, the corporate debtor may face liquidation.

Go First initiated voluntary insolvency resolution proceedings on May 10, following which the airline ceased operations on May 3. This latest extension underscores the ongoing efforts to facilitate the resolution process for Go First amidst the complexities of insolvency proceedings.

(With PTI inputs)