Now Go First will not fly, will pay off debt by selling assets; registration of 54 aircraft canceled

After Jet Airways, the airline company Go First, which is in financial trouble, will also not be able to fly now. On Monday, the National Company Law Tribunal (NCLT) ordered the liquidation of Go First, which had been providing air travel to crores of people for 17 years. This means that the company will have to repay its debt by selling its assets. Due to financial problems, the airline voluntarily applied for an insolvency resolution process in May 2023. The operations of Go First have been closed since May 3, 2023, i.e. for about two years.

NCLT said in a 15-page order that the company is Go Airlines (India) Ltd. NCLT is ordering the liquidation of Go First. Now the Committee of Creditors (CoC) has the right to decide on the liquidation of Go First at any time after its formation and before the confirmation of the resolution plan.

The NCLT said the proposal for liquidation of the corporate debtor was approved by the CoC with 100 percent voting. Therefore, there appears to be no merit in interfering with the commercial discretion of the CoC. Two months earlier, the Supreme Court had ordered the liquidation of Jet Airways on November 7, 2024, giving a big verdict in the bankruptcy proceedings case. Jet Airways last flew in April 2019.