Go First Crisis: Report Says Lenders Want To Take Complete Control And Replace Important Bankruptcy Officials
Lenders apparently want to assume complete control of the settlement process, which is a significant move in the Go First bankruptcy problem. According to reports, these lenders have taken over for important bankruptcy-related positions held by National Company Law Tribunal (NCLT) officials.
The Economic Times reported that the committee of creditors (CoC) took the position of the company’s assigned IRP, process adviser, and legal agency during the first meeting conducted on Friday. Their major goal was to demonstrate their desire to have control over the Go First insolvency procedure, which the business voluntarily filed.
Prior to this, several media stories circulated claiming that the CoC had chosen Shailendra Ajmera to serve as the resolution specialist. He took the position of Abhilash Lal, the IRP chosen by Go First Airlines and supported by Alvarez & Marsal (A&M).
The report further states that the CoC will shortly submit other amendment requests to the NCLT. This would also include A&M’s removal and the hiring of J Sagar Associates as the CoC’s legal counsel.
The Go First crisis is regarded as one of the largest in the history of civil aviation. One of the top airlines in India used the voluntary insolvency procedure to get out from under its debt and financial commitments.
The NCLT quickly acknowledged and approved the voluntary settlement that Go First Airlines had presented. Go First also cited Pratt & Whitney (PW) as a contributing factor in their grievance.
