Go First Grounded: NCLT Orders Airline's Liquidation Amid Financial Turbulence

The National Company Law Tribunal has ordered the liquidation of Go First, formerly known as Go Air, after financial difficulties forced the budget airline to stop operations. Despite efforts for a resolution, the decision was supported by the Committee of Creditors, resulting in Go First's collapse.

On Monday, the National Company Law Tribunal (NCLT) ordered the liquidation of Go First, a once-popular budget airline, following its cessation of operations nearly three years ago due to financial struggles. This decision comes after the airline filed for voluntary insolvency in May 2023, citing fiscal difficulties.

The NCLT's 15-page order articulates that the Committee of Creditors (CoC) holds the authority to opt for liquidation of the corporate debtor at any point prior to the confirmation of a resolution plan. Crucially, the CoC's unanimous 100% vote for liquidation underpinned the tribunal's decision, emphasizing commercial pragmatism.

Established as Go Air, Go First operated for over 17 years before halting services in May 2023. During insolvency proceedings, attention from bidders like Busy Bee Airways, with ties to SpiceJet's Ajay Singh, and Sharjah's Sky One, illuminated interest in reviving the carrier. However, unresolved issues have culminated in the airline's liquidation.

(With inputs from agencies.)