The National Company Law Tribunal (NCLT) has granted an additional 60-day extension for the resolution process of grounded airline Go First.
The decision came after a plea was filed by the resolution professional (RP) of Go First, seeking more time to complete the corporate insolvency resolution process (CIRP).
During the hearing, Diwakar Maheshwari, representing the RP, informed the two-member bench of the Delhi-based NCLT that three parties have submitted their expression of interest for Go First and have deposited earnest money. These firms are expected to submit their resolution plans for the airline, which has been undergoing CIRP since May 10, 2023.
This extension marks the second granted by the NCLT. Previously, on November 23 last year, the tribunal had extended the deadline by 90 days, which expired on February 4.
Among the interested parties are budget carrier Spicejet, Sharjah-based Sky One, and African continent-focused firm Safrik Investments.
According to the Insolvency & Bankruptcy Code (IBC), the completion of CIRP is mandated within 330 days, including the time taken during litigations. Section 12(1) of the Code specifies that CIRP should ideally be completed within 180 days. However, the maximum allowable time for completion, including extensions and litigation periods, is 330 days, beyond which the corporate debtor faces liquidation.
The NCLT had admitted Go First’s plea to initiate voluntary insolvency resolution proceedings on May 10, after the airline ceased operations on May 3.