NCLT Extends Insolvency Deadline Again for Go First Airline

The National Company Law Tribunal (NCLT) extended the insolvency resolution deadline for the grounded airline Go First, making it the fourth extension. The tribunal directed the suspended board to respond within three weeks. The decision follows the failure to find a buyer for the debt-ridden airline.

The National Company Law Tribunal (NCLT) has once again extended the insolvency resolution deadline for the struggling airline Go First, marking the fourth such extension. The tribunal directed the suspended board members of the financially beleaguered company to file a response within a three-week timeframe.

A two-member bench from the Delhi-based NCLT issued a notice to the company's suspended management, scheduling the matter for hearing in the first week of October. This action came after the resolution professional involved with Go First filed an application for the airline's liquidation, citing the inability of lenders to secure a viable purchaser within the established deadlines.

During the proceedings, Go First's legal representative informed the tribunal that the Committee of Creditors had voted in favor of liquidating the airline. Despite previous time extensions granted by the NCLT, the most recent being a 60-day extension in June, the company has struggled to find a buyer. The tribunal reiterated that this extension would be the final one in compliance with the Insolvency & Bankruptcy Code (IBC), which mandates a 330-day limit for the Corporate Insolvency Resolution Process (CIRP) including any litigation period.

(With inputs from agencies.)