Three aircraft lessors, including SMBC Aviation Capital, GY Aviation, and SFV Aircraft Holding, have filed appeals with the National Company Law Appellate Tribunal (NCLAT) against the National Company Law Tribunal’s (NCLT) order to allow Go First to voluntarily initiate insolvency proceedings. The Delhi-based Principal bench of the NCLT had recently admitted Go First’s plea to start the insolvency resolution process against the airline.
SMBC Aviation Capital, one of the world’s largest aircraft leasing companies, filed the first appeal with the NCLAT on Wednesday, just hours after the NCLT’s decision. GY Aviation, the biggest lessor of Go First with nine aircraft, and SFV Aircraft Holdings, which has leased out one aircraft to the Wadia group-owned airline, followed suit on Thursday.
Go First, formerly known as GoAir, is one of India’s low-cost carriers and has been struggling with financial difficulties due to the COVID-19 pandemic’s impact on the aviation industry. The airline’s financial problems have affected its lessors, who have not received rental payments for leased aircraft for several months.
The lessors have expressed concern that Go First’s voluntary insolvency could harm their interests and result in significant losses. They are seeking to protect their assets and obtain a fair resolution of their claims in accordance with Indian insolvency laws.
The NCLAT will now hear the appeals filed by the lessors and decide whether to grant a stay on the NCLT’s order. If the stay is granted, it will prevent Go First from initiating the insolvency resolution process until the appeals are resolved.
Go First has yet to comment on the appeals filed by the lessors. However, the airline’s management has previously stated that the insolvency resolution process would help it restructure its debts, address its financial difficulties, and enable it to continue operating.
The outcome of the appeals filed by the lessors will have a significant impact on Go First’s future and the aviation industry in India. The case highlights the challenges faced by airlines and lessors in the current economic climate and the importance of a fair and transparent insolvency process to protect the interests of all parties involved.
