Big announcement possible next week regarding the future of Go First Image Credit source: File Photo
What will be the future of budget airlines Go First? This is a big question at present. GoFirst, which reached the verge of bankruptcy, had itself approached the NCLT, from where it has got immediate relief. But now a committee has been formed to decide the future of the company. This includes banks and other creditors giving loans to the company.
Along with giving relief to GoFirst, the NCLT had appointed an interim resolution professional. But according to the process of bankruptcy law, the company has to form a committee of its creditors called ‘Committee of Creditors’, which appoints a resolution professional. The last date to form such a committee for the company was June 9, so now this work has been done.
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The committee will make a big announcement next week
Go First, which is facing cash crunch, has stopped operating flights from 3 May. In such a situation, with the formation of the Committee of Creditors, the hopes of restarting the company have increased, because the Committee of Creditors will now do this work faster. On Friday, a meeting of this committee was also held with the officers and employees of the company, in which the future strategy of the company was considered.
According to PTI news, the Committee of Creditors will now appoint a new resolution professional (an officer who completes the resolution or insolvency process for the company). Its name can be announced on Monday, June 12. The members of the Committee of Creditors have suggested one name each from both KPMG and EY audit houses.
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These banks are included in the Committee of Creditors
All the banks are included in the Committee of Creditors of Go First. This includes Bank of Baroda, Central Bank of India, IDBI Bank and Deutsche Bank. Sources say that the Committee of Creditors will now work on the revival plan of Go First. Once the situation is cleared, information about this will also be given. At the same time, the same revival plan will be given to the regulator of aviation sector, DGCA.
Due to operational reasons, Go First flights till 14th June 2023 are cancelled. We apologize for the inconvenience caused and request customers to visitfor more details. For any queries or concerns, please feel free to contact us.
— GO FIRST (@GoFirstairways)
Flights will remain closed till June 14
The date for cancellation of GoFirst flights has increased once again. The company informed on Twitter that all its flights will remain canceled till June 14, 2023. At the same time, the company will also start the refund process for this soon.