The tribunal also ordered a moratorium on Go First’s assets and leases. The tribunal also ordered a moratorium on Go First’s assets and leases. The tribunal also ordered a moratorium on Go First’s assets and leases. On Wednesday, the National Company Law Tribunal (NCLT) admitted crisis-hit Go First airline'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 Abhilash Lal backed by Alvarez and Marsel as interim resolution professional (IRP) to run the debt-ridden company, news agency PTI reported.
The tribunal 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.
Furthermore, it ordered to keep the company as a "going concern" and ensure that no employees are retrenched.
Earlier, Go First had sought Alvarez and Marsal to take over as IRP. They were also roped in by Jet Airways in 2015.
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.
Meanwhile, the Wadia group-owned carrier on Wednesday said that all flights scheduled till May 19 have been cancelled due to "operational reasons".
"A full refund will be issued to the original mode of payment shortly," it said in a statement.
The lessors of the carrier have opposed Go First's plea for an interim moratorium contending that it would have "harmful and serious consequences".
(With PTI inputs)