The National Company Law Tribunal (NCLT) has granted Go First Airlines a 90-day extension for its Corporate Insolvency Resolution Process (CIRP), effective from November 6, 2023, to February 4, 2024. 

The Committee of Creditors (CoC), with significant stakes held by the Bank of Baroda, Central Bank of India, and IDBI Bank, unanimously supported the CIRP extension. 

The NCLT directed the resolution professional (RP) overseeing Go First’s insolvency to submit a 90-day action plan. The tribunal emphasised that the resolution plan should be completed within the stipulated period, and any failure may lead to liquidation proceedings.

The airline had voluntarily filed for insolvency on May 2, 2023, and the NCLT admitted the plea on May 10, appointing an RP to manage the company’s affairs. The RP informed the NCLT that there is one prospective bidder for the airline, but they did not submit the resolution plan by the November 21 deadline. 

Despite legal challenges with aircraft lessors and complications from government decrees, Go First obtained an expression of interest from one prospective resolution applicant, Jindal Power, which was accepted by creditors. However, the company decided not to submit a bid, pushing Go First closer to liquidation, as reported on November 21.

Failure to complete the insolvency resolution process within 180 days, as per the Insolvency and Bankruptcy Code (IBC) of 2016, leads to mandatory liquidation. The NCLT has the authority to extend this timeframe to a maximum of 330 days. On February 4, 2024, Go First would have been under the resolution process for 270 days.