The National Company Law Tribunal (NCLT) on Wednesday admitted Go First's voluntary plea to initiate the insolvency resolution process against the airline.
A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta also appointed Abhliash Lal as interim resolution professional (IRP) to run the debt-ridden company.
It has also put the company under protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings.
Besides, NCLT also ordered to keep the company as a going concern and ensure that no employee are retrenched.
On May 4, the NCLT reserved its order after hearing the Wadia group-owned carrier and its aircraft lessors who have opposed the petition seeking interim protection.
Go First, which has been flying for more than 17 years, stopped flights from May 3 amid financial crunch caused by grounding of more than half of its fleet due to non-availability of Pratt & Whitney engines.
With liabilities worth Rs 11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
Go First has already suspended the sale of tickets till May 15.
As many as 28 planes or more than half of the airline's fleet are grounded due to the non-supply of engines by Pratt & Whitney (P&W).
The lessors of the carrier have opposed Go First's plea for an interim moratorium contending that it would have "harmful and serious consequences".
Besides, Go First is facing two more petitions seeking insolvency proceedings against it.
Go First insolvency chronology
- May 2 - Go First files for voluntary insolvency resolution proceedings, seeks interim moratorium on financial obligations; suspends all flights till May 5.
- May 4 - Aviation regulator Directorate General of Civil Aviation (DGCA) issues show cause notice to Go First for sudden suspension of flights.
- Go First suspends sale of tickets till May 15. National Company Law Tribunal (NCLT) reserves its order on Go First's petition.
- May 5 - Go First cancels all flights till May 12.
- May 8 - Go First requests NCLT to take an early decision on its petition. DGCA directs Go First to immediately stop sale of tickets till further orders.
- May 9 - Go First says will respond to DGCA show cause notice in due course. Lessors seek deregistration of 45 Go First planes in last one week.
- May 10 - NCLT admits Go First's petition for insolvency resolution proceedings; imposes moratorium on airline.