Go First Resolution Professional Seeks Expressions of Interest
Go First, a city-based airline that filed for voluntary insolvency proceedings earlier this year has taken a step forward in its resolution process. The Resolution Professional (RP) of Go First, Shailendra Ajmera, has invited expressions of interest (EOI) from prospective resolution applicants (RPAs) for the grounded airline. In a public notice, Ajmera stated that the deadline to submit EoIs is set for August 9, 2023. The final list of eligible RPAs will be declared on August 19.
The public notice also mentions that objections to the provisional list can be submitted until August 24. This process ensures transparency and allows interested parties to participate in the resolution process.
Go First faced significant revenue losses due to the non-supply of aircraft engines by Pratt & Whitney, a US engine maker. As a result, the airline had to ground more than half of its fleet, leading to a financial crunch. Consequently, the airline ceased flight operations on May 3. Seeking relief, Go First filed for voluntary insolvency proceedings at the National Company Law Tribunal (NCLT) on May 2, and the plea was admitted by the court on May 10.
According to the public notice, Go First had a revenue of Rs 4,183 crore from operations in the financial year that ended in March 2022. The airline employs around 4,200 individuals. However, it also reported liabilities worth Rs 11,463 crore in its balance sheet, underlining the financial challenges it faces.
Go First Committee of Creditors (CoC)
To expedite the sale process, the Go First Committee of Creditors (CoC) was established in early June. The CoC consists of the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank. This committee plays a crucial role in facilitating the resolution and sale of the airline.
Late last month, Go First submitted a revival plan approved by the CoC to the aviation safety watchdog, the Directorate General of Civil Aviation (DGCA), seeking approval to resume flight operations. In response, the DGCA ordered a special safety audit conducted by a team of experts. This audit took place from July 4 to 6 at Go First’s facilities in Mumbai and Delhi. The DGCA’s report is expected to be released this week and will influence the decision on allowing the airline to resume its operations.
As Go First moves through the insolvency resolution process, the EoIs received from interested parties will play a vital role in determining the future of the airline. The resolution professional will also carefully evaluate the submitted EoIs, and after a thorough assessment, eligible applicants will be shortlisted. The resolution process aims to revive the airline and ensure the best possible outcome for all stakeholders involved.
The aviation industry, passengers, and employees will be eagerly awaiting further developments as the resolution process progresses.
Also, Read: Indian Aviation News
Private & Non-scheduled Charter operators in India
Go through, the Mall of Aviation
For the best HELIPAD CONSULTANCY
Aircraft flew on cooking oil
Go First Cancels All Flights Until May 26 for Operational Reasons
AI Flight Lands at Delhi Airport with Cracked Windshield Sparking Full Emergency
About Author
