An Indian tribunal has ordered the liquidation of Go First Airways following a request by the cash-strapped airline’s creditors, CNBC-TV18 reported on Monday.
Go First Airways did not immediately respond to a Reuters request for comment.
In August, Go First’s creditors had decided to liquidate the company’s assets after rejecting bids from suitors seeking to revive the bankrupt airline, Reuters reported citing sources.
Go First had filed for bankruptcy in May last year and received two financial bids under the bankruptcy process, one of which increased its offer after pressure from lenders.
The budget carrier owes a total of Rs 65.21 billion ($781.14 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.
Go First’s foreign aircraft lessors were in dispute with the company as they were prevented from repossessing the aircraft due to a stay imposed by Indian courts. However, in April a local court allowed them to take back their aircraft.
(TagstoTranslate)Law Tribunal
