NCLAT upholds Go Air’s bankruptcy, leaving aircraft lessors in a bind
- IBJ Bureau
- May 23, 2023
The National Company Law Appellate Tribunal (NCLAT) on Monday upheld insolvency proceedings against cash-strapped airline, Go First, in what seems to be a big blow for aircraft lessors who had challenged the decision.
Aircraft lessors had approached the NCLAT and challenged the National Company Law Tribunal’s ruling that had granted bankruptcy protection to Go First.
This means Go First’s aircraft lessors, which include big names such as GY Aviation Lease, SFV Aircraft Holdings and SMBC Aviation Capital among others, will not be able to repossess leased planes from the beleaguered airline.
The lessors had earlier said that the airline was using its bankruptcy plea to hold on to planes that it does not own. In fact, SMBC had questioned why Go First had filed for insolvency even with 26 functional aircraft. The global aircraft leasing giant said Go First owes it roughly Rs 700-800 crore.
It may be noted that Go First’s total liabilities stand at over Rs 11,000 crore.