NCLT to provide Go First relief from National Company Law Tribunal, bankruptcy protection; Flights canceled till May 19

The National Company Law Tribunal (NCLT) on May 10 agreed to provide protection to GoFirst Airline while giving relief from recovery by lessors, and lenders. NCLT said in its decision that we accept the petition of Go Airlines for bankruptcy proceedings.
A two-judge bench comprising President Justices Ramalingam Sudhakar and LN Gupta appointed Abhilash Lal as interim resolution professional (IRP) to run the debt-ridden company. The bench also placed the company under the protection of moratorium and directed the suspended board of directors to deposit Rs 5 crore for immediate expenses.
Along with keeping the company running, the NCLT also ordered to ensure that no employee is retrenched. On May 4, the NCLT reserved its order after hearing the Wadia Group-owned carrier and its aircraft lessees. The aircraft lessors had opposed the plea seeking interim protection.
Go First, which has been flying for more than 17 years, stopped flights on May 3 amid a financial crisis due to the grounding of more than half of its fleet due to the unavailability of Pratt & Whitney engines. With liabilities of Rs 11,463 crore, the airline had sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.
The airline has suspended the sale of tickets till May 19. At least 28 aircraft of the airline, or more than half of the fleet, have been grounded due to a non-supply of engines by Pratt & Whitney (P&W). The carrier's lessees have opposed GoFirst's plea for an interim stay, saying it would have harmful and serious consequences.