The National Company Law Tribunal (NCLT) has granted a fourth extension for Go First’s insolvency resolution, pushing the deadline further. The suspended management of the struggling airline has been given three weeks to respond to the tribunal’s notice. A hearing is scheduled for the first week of October.
The resolution professional for Go First requested liquidation under section 33(1) of the Insolvency & Bankruptcy Code after lenders failed to find a suitable buyer in time. During the proceedings, it was revealed that the Committee of Creditors had voted in favor of liquidation.
The latest extension follows a 60-day extension granted in June, as Go First has been unable to secure a buyer. The NCLT’s Delhi bench has stated that this will be the final extension. According to the Insolvency & Bankruptcy Code, the Corporate Insolvency Resolution Process (CIRP) must be completed within 330 days, including any litigation time.
Go First, which ceased operations on May 3, was admitted to insolvency proceedings on May 10, 2023. If the CIRP is not completed within the mandated time frame, the airline will face liquidation.
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