The National Company Law Tribunal has extended the Corporate Insolvency Resolution Process (CIRP) of cash-strapped airline Go First by 90 days till February 4, 2024. The Committee of Creditors (CoC) said the period The six-month grace period ended on November 6.

On October 17, it passed a resolution to extend the resolution process for 90 days. The 90-day period already started on November 6, 2023 and will continue until February 4, 2024.

The NCLT has asked the controversial airline to submit an action plan within the stipulated time. The court said that if the airline does not complete the resolution process within this 90-day period, it would initiate the process of liquidating the company.

Go First's resolution professional informed the court that there is a potential bidder for the airline.

On Tuesday, Jindal Power, led by Naveen Jindal, said it will not proceed with its bid to acquire low-cost airline Go First, Reuters reported. The deadline to submit offers ended on November 21.

Jindal Power and Jettwings Airways, a northeast-based regional low-cost airline, were the only bidders and had submitted expressions of interest (EoI) for Go First in October. The Wadia group, founders of Go First, were allowed to participate in the EoI process but did not submit a bid.

On Thursday, Go First's resolution professional informed the court that there was a potential bidder for the airline. However, they did not submit the resolution plan until November 21, the deadline set for the resolution plan.

He said the CoC passed a resolution to achieve this extension with 100 percent of the vote.

Earlier this month, the Directorate General of Civil Aviation (DGAC) said that leased aircraft and engines can be deregistered and returned to their lessors, exempting them from the moratorium under the Insolvency and Bankruptcy Code (IBC).

In July, the DGCA said it had received requests from lessors to decommission Go First's entire fleet of 54 aircraft.

Go first to the insolvency schedule

The embattled airline, which stopped flying on May 3, filed its plea with the Corporate Insolvency Resolution Process (CIRP) on May 2, 2023. The court recognized Go First's insolvency petition on May 10 and appointed a Resolution Professional (RP) to lead the process. company business.

Go First owes Rs 6,521 crore to its lenders led by Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank. The Central Bank of India, which has an exposure of around Rs 2,000 crore to Go First, declared the account as a non-performing asset (NPA) in October. Bank of Baroda, which has an exposure of Rs 1,200 crore, followed suit and declared its loans as NPAs.

Meanwhile, Go First aircraft lessors have filed an appeal against the NCLT order before the National Company Law Appellate Tribunal (NCLAT), pointing out that their assets were stripped from them even after terminating the lease contracts before the moratorium.