Resolution professional questions timing of cos cancelling Go First leases

Aircraft leasing companies were aware of Go First’s financial troubles but terminated leases when it filed for insolvency, the resolution professional (RP) in the bankruptcy process told the National Company Law Tribunal on Tuesday.

Senior advocate Ramji Srinivasan, appearing for the RP, said Go First received a notice terminating aircraft and engine leases on May 2, when the airline announced it would file for insolvency.

The tribunal was hearing applications by SMBC and Engine Lease Finance BV, aircraft and engine lessors, asking for their assets to be exempted from the moratorium period. The two companies told the court that they had terminated leases before the moratorium started on May 10.