‘Go’s First move could give it some control over its fate’

Wadia Group-owned Go First Airlines has shown the way for financially struggling firms how to protect itself and work on coming back to life within the insolvency and bankruptcy framework, said bankers and lawyers.

The voluntary insolvency will not only give the company a moratorium on loan repayments, it will also allow the company to control the insolvency process rather than being at the mercy of creditors. This provides enough elbow room for the company to work out a restructuring package with lenders. “This is a very smart pre-emptive move by the company,” said Pradeep Joy, founder, PJ Law Offices. “The admission of an voluntary insolvency and the consequent moratorium and shift in management of the company to an independent professional will salvage the value significantly.”