Go First: SMBC Aviation Capital moves to NCLAT challenges NCLT order protecting airlines from recovery by lessors
US-based jet manufacturers Pratt and Whitney has defended itself against the budget airline's claim that P&W is responsible for the financial condition and bankruptcy.'
One of the aircraft lessors of Go First Airlines, SMBC Aviation Capital, moved to the National Company Law Appellate Tribunal (NCLAT) on Thursday challenging the National Company Law Tribunal (NCLT)’s order, which admitted the budget airlines’ insolvency process and protects it from creditors and lessors. The NCLAT will have the hearing today.
On Wednesday, the NCLT admitted Go First’s plea for voluntary insolvency and admitted the initiation of Corporate Insolvency Resolution Process (CIRP) proceedings. NCLT has granted Go First protection under a moratorium from recovery by lessors and lenders.
NCLT, in its order, said, “We admit the plea of Go Airlines for insolvency proceedings. It said that we appoint Abhilash Lal as IRP (insolvency resolution professional).”
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“The suspended board of directors will cooperate with the IRP. Suspended directors are also ordered to deposit Rs 5 crore to make the immediate expenses,” the order stated.
The budget airline had also cancelled all the flights’ operations till May 19 due to operational reasons, “Go First flights until 19th May 2023 are cancelled. We apologise for the inconvenience caused and request customers.”
US-based jet manufacturers Pratt and Whitney has defended itself against the budget airline’s claim that P&W is responsible for the financial condition and bankruptcy.”
Go First’s allegations that Pratt & Whitney is responsible for its financial condition are without merit. Pratt & Whitney will vigorously defend itself against Go’s claims, and is pursuing its own legal recourse,” Pratt & Whitney spokesperson told ANI.
The airline, owned by the troubled Wadia Group, had earlier blamed P&W for the faulty engines that led to its ongoing financial crisis and it was later forced to file an involuntary bankruptcy petition.
Jet Engines manufacturer P&W earlier also stated that Go First has a long history of missing financial commitments to Pratt & Whitney.
“Pratt & Whitney continuously offered its support over several years and particularly through COVID. Go First leadership chose to pursue litigation,” a P&W official told ANI.
With inputs from ANI.
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