New Delhi: The National Company Law Tribunal (NCLT) on Thursday directed grounded carrier Go First to release four aircraft engines to Engine Lease Finance (ELF) BV.
Counsel appearing for the resolution professional (RP) said that they have already initiated the process of returning one engine to the lessor. The RP said he had no objection to the process of releasing the four aircraft.
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
NCLT has posted the matter for further hearing on August 9, when other engine lessees can argue their case for refund.
Earlier in June, NCLT had granted a 60-day extension to grounded air carrier Go First to complete its insolvency process for 60 days.
This is the fourth extension of Go First, which is struggling to find a buyer, to complete the corporate insolvency resolution process (CIRP).
The Delhi-based NCLT bench said this is the final extension.
The Insolvency and Bankruptcy Code (IBC) mandates completion of the CIRP within 330 days, including the time taken during litigation.
As per Section 12(1) of the Code, CIRP must be completed within 180 days.
However, including any extension or litigation period, the maximum time limit for mandatory completion of CIRP is 330 days, failing which the corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT accepted Go First's plea to initiate voluntary insolvency resolution proceedings – which had stopped operating flights on May 3.
Counsel appearing for the resolution professional (RP) said that they have already initiated the process of returning one engine to the lessor. The RP said he had no objection to the process of releasing the four aircraft.
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
NCLT has posted the matter for further hearing on August 9, when other engine lessees can argue their case for refund.
Earlier in June, NCLT had granted a 60-day extension to grounded air carrier Go First to complete its insolvency process for 60 days.
This is the fourth extension of Go First, which is struggling to find a buyer, to complete the corporate insolvency resolution process (CIRP).
The Delhi-based NCLT bench said this is the final extension.
The Insolvency and Bankruptcy Code (IBC) mandates completion of the CIRP within 330 days, including the time taken during litigation.
As per Section 12(1) of the Code, CIRP must be completed within 180 days.
However, including any extension or litigation period, the maximum time limit for mandatory completion of CIRP is 330 days, failing which the corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT accepted Go First's plea to initiate voluntary insolvency resolution proceedings – which had stopped operating flights on May 3.
