Go First files petition in NCLT, appeals to stop lessees and DGCA from coercive action
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New Delhi : GoFirst, an airline providing affordable services facing cash crunch, has appealed to the National Company Law Tribunal (NCLT) to give several interim directions. Go First has said in its appeal that the NCLT should restrain the lessors of aircraft from taking back their aircraft. Along with this, instruct the Directorate General of Civil Aviation (DGCA) not to take any coercive action.
Rs 11,463 crore loan on Go First
GoFirst, the airline owned by the Wadia Group, has a liability of Rs 11,463 crore. The company has applied for voluntary insolvency resolution process. The Delhi bench of NCLT will hear the appeal of Go First on Thursday. Go First has canceled all its flights for three days from May 3.
Appeal to stop the forcible action of DGCA
In its petition filed before the NCLT, the airline has appealed to restrain the aircraft lessors from taking any recovery action as well as restrain the DGCA and suppliers of essential goods and services from coercive action. The appeal also asked the DGCA, the Airports Authority of India (AAI) and the private airport operator not to cancel the departure and parking slots allotted to the airline. The airline also wants fuel suppliers to continue to supply for aircraft operations.
Why did the crisis arise
GoFirst started flying more than 17 years ago. The airline has said that more than half of its fleet is grounded due to non-supply of engines by Pratt & Whitney, which has led to the situation. The total liability on the airline is Rs 11,463 crore. This also includes the amount of Rs 3,856 crore, which it has missed in repaying the operational creditors. The dues of aircraft leasing companies are Rs 2,600 crore.
Three lenders ready for debt restructuring
MUMBAI: First lenders Central Bank of India, Bank of Baroda (BoB) and Deutsche Bank have refused to provide additional finance immediately to the Wadia Group-promoted airline, but are ready to restructure the loan with a longer tenure for repayment. Are. Voluntary insolvency resolution petition filed by the company in NCLT has put the lenders in a tizzy. Though bank loans and credit facilities are now classified as standard accounts, lenders fear a steep cut if the loan restructuring is not implemented soon.
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