Go First Insolvency: NCLT Approves Appointment Of New Resolution Professional

The National Company Law Tribunal allowed the replacement of court-appointed interim resolution professional Abhilash Lal with Shailendra Ajmera.

Senior Advocate Niranjan Reddy appeared for the creditors on Thursday and submitted that the meeting had a 100% vote to replace the IRP. He said that the creditors had more confidence in Ajmera to perform the functions of the resolution professional.

Senior Advocate Harish Salve, who appeared for Lal, submitted that the IRP had no objection to the approval sought by the creditors.

Last week, Go First's lenders took steps to take full control of the resolution process and replaced several company-appointed bankruptcy officials. The Committee of Creditors held its first meeting on June 9, replacing Lal of Alvarez and Marsal Holdings LLC.

EY was chosen to function as the adviser after replacing Alvarez and Marsal, and Ajmera was chosen by the committee to replace the previous IRP. However, these steps required the approval of the NCLT, for which the current application was filed.

In the first week of June, Go First submitted to the Directorate General of Civil Aviation its plan to resume functions in 30 days with 26 planes and 152 daily flights. But since a new IRP has been appointed, a new plan might have to be approved and submitted for the revival of the airline.

Additionally, several engine lessors of Go First have approached the tribunal to be allowed to inspect their engines. The NCLT has directed the airline to file its response to the pleas and has listed the matter to be heard on July 6.

Go First's creditors include the Central Bank of India, the Bank of Baroda, IDBI Bank Ltd., and Deutsche Bank.