In a significant development, the National Company Law Tribunal (NCLT) has directed Go First, the grounded carrier, to release four aircraft engines belonging to Engine Lease Finance (ELF) BV. The decision, made during a hearing on Thursday, underscores ongoing proceedings related to Go First’s insolvency resolution.
The tribunal’s directive follows a submission by the resolution professional (RP) representing Go First, indicating that the process of returning one engine to ELF BV has already commenced without objection. ELF BV, headquartered in Shannon, Ireland, is renowned as a leading independent engine financing and leasing company globally.
Adjournment for Further Deliberation
The matter has been adjourned for further deliberation to August 9, allowing other engine lessors an opportunity to present their case for engine return.
Earlier in June, NCLT had granted Go First a 60-day extension to complete its Corporate Insolvency Resolution Process (CIRP), marking the fourth such extension. Struggling to secure a buyer, Go First has been navigating challenges amid the stipulations of the Insolvency and Bankruptcy Code (IBC).
Under Section 12(1) of the Code, the CIRP should ideally conclude within 180 days, with a maximum permissible duration of 330 days, inclusive of litigation periods. Failure to meet these deadlines could potentially lead to liquidation proceedings.
Go First, which ceased flight operations on May 3, 2023, initiated voluntary insolvency resolution proceedings as admitted by NCLT on May 10, 2023.
The next hearing on August 9 is expected to provide further clarity on the progress of Go First’s insolvency resolution and the compliance with regulatory timelines.