Relief for Go First, gets protection from bankruptcy

In a major relief to cash-strapped Go First airline, the National Company Law Tribunal (NCLT) on Wednesday admitted its plea for voluntary insolvency resolution proceedings.

With liabilities worth Rs 11,463 crore, the airline had sought voluntary insolvency resolution proceedings and an interim moratorium on its financial obligations under Section 10 of the IBC, which allows a company to approach the NCLT for initiation of insolvency after default.

“Moratorium under 14(1) of IBC, 2016 is already initiated in respect of the Corporate Applicant/Corporate Debtor”, the order by NCLT said as it dismissed the application for interim moratorium as “infructuous”.