Go First has filed your petition under Section 10 of the Bankruptcy and Insolvency Code to initiate the insolvency against you. (Reuters)
Go First canceled its flights through May 19 and said a full refund would be issued to the original mode of payment.
Cash-strapped airline Go First announced on Wednesday that all its flights are canceled until May 19, citing “operational reasons”, while the National Company Law Tribunal (NCLT) accepted its voluntary petition to initiate a insolvency resolution procedure.
“For operational reasons, Go First flights through May 19, 2023 are cancelled,” the airline announced in a tweet. He apologized for the inconvenience caused and asked customers to visit his website for more information.
For operational reasons, Go First flights until May 19, 2023 are cancelled. We apologize for the inconvenience caused and ask customers to visit https://t.co/qRNQ4oQROr for more information. For any questions or concerns, do not hesitate to contact us. pic.twitter.com/T1WktKJIuZ— GO FIRST (@GoFirstairways) May 10, 2023
“A full refund to the original mode of payment will be issued shortly,” the statement read.
Previously, the airline had canceled all its flights until May 12 and suspended ticket sales until May 15. The airline began canceling all its flights on May 3 due to a financial crisis caused by Pratt & Whitney’s non-delivery of engines, which resulted in a significant portion of its fleet being grounded.
The Wadia Group-owned carrier, with liabilities totaling Rs 11,463 crore, has filed for voluntary insolvency resolution proceedings with the National Company Law Tribunal (NCLT) and an interim moratorium on its financial obligations.
The General Directorate of Civil Aeronautics (DGCA), ordered the airline on Monday to immediately stop the sale of tickets and also issued a just cause notice for not continuing the operation of the service in a safe, efficient and reliable manner.
Go Fist in its statement on Wednesday said that the company has submitted a request for immediate resolution and reactivation of operations. “We will be able to resume bookings shortly,” he said.
NCLT admits Go First’s petition to start an insolvency resolution
Meanwhile, NCLT on Wednesday accepted Go First’s voluntary petition to initiate insolvency proceedings against the airline.
The two-member bank, made up of Chairman Justice Ramalingam Sudhakar and LN Gupta, appointed Abhilash Lal as the Interim Resolution Professional (IRP) to oversee the debt-ridden company. The NCLT also placed a moratorium on the company and ordered the suspended board of directors to help the IRP run the company during insolvency proceedings. Additionally, the NCLT instructed that the company must remain a going concern and no employees should be terminated.
read all latest news from india and Karnataka Election 2023 updates here
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.