TBM Staff - Mumbai The National Company Law Tribunal (NCLT) on Monday deferred its hearing in Go First’s insolvency case to July 11, leaving the lessors stranded.
The NCLT indicated that it needed more time to study the Delhi High Court’s order asking the Directorate General of Civil Aviation (DGCA) to deregister all its 54 aircraft by May 3, 2024, reports Bhavini Mishra for Business Standard.
Engine lessors urged the NCLT that their engines are connected to some of the deregistered aircraft and if these aircraft are required to leave the country after deregistration, their engines must also be deregistered.
They also told the NCLT that Go First’s Resolution Professional had no jurisdiction left now that the DGCA has deregistered all the 54 aircraft as per the Delhi HC, and the Resolution Professional has not challenged this.
The Resolution Professional on Monday declined to clarify the future course of action for the airline.
Lenders told the newspaper the only option that remained was liquidation. They said they would lose money when the airline was liquidated since the value of its assets had gone down due to prolonged litigation.
Go First had filed for bankruptcy in May last year. Since then, the lessors have been locked in a battle with the former owner of the airline, lenders, and the resolution professional to take control of their aircraft.
