It's finally curtains for Go First. Lenders are understood to have voted in favour of liquidating the airline as the revival process failed to elicit a viable plan.

Voting on the proposal concluded over the weekend as the extension for the resolution process got over on June 3. Shailendra Ajmera, the grounded airline's resolution professional, is expected to circulate the results to the committee of creditors (CoC) and file an application before National Company Law Tribunal on Monday, it is learnt.

The CoC comprises Central Bank, Bank of Baroda and IDBI Bank who have a collective exposure of around ₹3,700 crore.

The Wadia-group airline suspended its operations last May citing a cash crunch. The airline's application for insolvency was admitted on May 10.

The first ray of hope came last June when Directorate General of Civil Aviation okayed restart of operations subject to availability of funds and outcome of pending litigation. “Lenders had approved interim finance for restart of operations. It’s probably the inability to bring lessors on board that proved to be the stumbling block,” said a person familiar with the issue.

Lessors continued to litigate and in April secured a favourable order from Delhi High Court for de-registration of Go First’s 54 aircraft. 

The resolution process also turned to be a damp squib. In first round of bidding, Naveen Jindal's Jindal Power was the sole firm submitting an expression of interest. SpiceJet promoter Ajay Singh along with Nishant Pitti of Easemytrip and Sharjah-based Sky One submitted EoIs in February when bids were called again. In May, Singh-Pitti consortium withdrew their bid leaving Sky One as the sole suitor.

"The resolution plans were sub-optimal leaving lenders no hope but to recommend it's liquidation," the person added.

Emails sent to EY India (which is managing the resolution process) and lenders did not elicit an immediate response.

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