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The National Company Law Tribunal (NCLT) has approved the appointment of Shailendra Ajmera as its Resolution Professional In the Go First insolvency case. This decision comes even as Go First extended its flight cancellations until June 19 citing operational reasons.
The NCLT has directed the new Interim Resolution Professional to address concerns raised by aircraft lessors. While the lessors did not object to the change in RP, they expressed discontent with the lack of efforts made by the to maintain the aircraft.
During the proceedings, Senior Advocate Harish Salve represented Abhilash Lal, who had no objections to the plea filed by the Committee of Creditors (COC) seeking to replace him. Go First had filed for voluntary insolvency resolution on May 2 and suspended operations on May 3.
Several lessors, including SMBC Afro Engine Leasing, Bluesky 19 Leasing Company Limited, and Bluesky 31 Leasing Company Limited, have submitted applications, seeking possession of their aircraft and engines. They claimed to have terminated their leases with Go First prior to the moratorium, which came into effect on May 10.
The NCLT has now directed the new RP to safeguard the assets of the lessors. These applications are expected to be heard on July 6. In the same hearing, the NCLT approved the appointment of Shailendra Ajmera as the new RP for Go First.
These recent developments highlight the ongoing challenges faced by Go First in resolving its financial crisis. The appointment of a new RP aims to bring fresh perspective and expertise to the insolvency resolution process. However, concerns raised by the lessors regarding maintenance of the aircraft demonstrate the need for effective asset management during this period. The NCLT’s directive to the RP to maintain the assets underscores the importance of addressing these concerns.
Future bleak
The future of Go First remains uncertain, and the resolution process will continue to unfold in the coming months. The airline will need to collaborate with all stakeholders, including lessors, to find a viable solution that ensures the best outcome for all parties involved.
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