Mumbai, Aug 5: Defunct airline Go First’s committee of creditors (CoC) have unanimously decided in favour of liquidating the company as bids by prospective resolution applicants were below expectations.
Go First owes its creditors around Rs 6,200 crore. Central Bank of India, Bank of Baroda, and IDBI Bank are some of the secured creditors of the airline, with admitted claims of Rs 1,934 crore, Rs 1,744 crore, and Rs 75 crore, respectively.
According to reports, a private bank, which has a small exposure to the airline, pushed for the proposal which is through and the airline will be recommended for liquidation soon.
Previously, the National Company Law Tribunal (NCLT) had extended the insolvency process of the debt-laden airline until August 3. It had instructed the CoC and the resolution professional to adhere strictly to this deadline with no further extensions.
Go First had filed for voluntary bankruptcy in May last year.
Since then, lessors were battling with the airline, lenders and the resolution professional to take possession of their aircraft.
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