NCLT To Hear Go First's Insolvency Plea Today
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New Delhi: The National Company Law Tribunal (NCLT) will hear cash-strapped carrier Go First's insolvency plea on Thursday (May 4). On Tuesday, the airline had said that it has filed for insolvency resolution as it can no longer continue to meet its financial obligations, blaming US company Pratt & Whitney's "faulty engines" for grounding of 50 per cent of its fleet. Go First had also announced suspension of all its flight operations from May 3 to May 5. Its CEO Kaushik Khona had confirmed on Tuesday that the airline has filed an application for voluntary insolvency resolution proceedings before the NCLT. Go First owes financial creditors Rs 6,521 crore, its bankruptcy filing showed.
The voluntary bankruptcy petition filed by the Go Airlines will be impacting its lenders, i.e., banks. However, private lender Axis Bank said on Wednesday in a regulatory filing that it has no funded or non-funded exposure to the financially-troubled Go Airlines. Accord