Mumbai: Lenders to Go First airlines have extended the insolvency resolution timelines of the grounded carrier by another 90 days amid uncertainty whether the company, India’s first commercial airline to voluntarily seek bankruptcy protection, will eventually have enough planes to fly.Lenders took the decision to extend the deadline, which ended Monday, even as the Delhi High Court decides whether aircraft lessors have the rights to impound planes of a carrier in administration. About ₹6,500 crore of creditor funds are stuck after Go First’s services were grounded in May.”
“The extension was necessary given the current situation. Also, the lone bidder, Naveen Jindal, has to be given at least one month to do due diligence from October 22 when he was declared a legitimate bidder. All these factors have pushed back the resolution process deadline by three months,” said a person familiar with the situation.
