Budget airliner Go First on Monday has requested the National Company Law Tribunal to urgently pass the order on its moratorium plea.
The tribunal without stating any date of announcement for the bankruptcy order on May 4 reserved the order on the petition.
The airline on Monday brought up the issue before a bench headed by Justice Ramalingam Sudhakar and said it is facing difficulties as SMBC Aviation, one of the aircraft lessors, is restricting it from doing maintenance work of aircrafts and is taking possession of planes. The airline claimed that it had received notices from the aircraft lessor for termination and that they have moved to the Directorate General of Civil Aviation as well reported, CNBC TV18.
On Thursday, Wadia Group-promoted Go First's voluntary insolvency petition's first hearing, the airline argued that it needs a moratorium on its assets to remain a "going concern".
Aircraft lessors to Go First however have rejected the petition arguing that this could stop third parties from enforcing their contractual rights.
Go First facing issue to faulty engines
Go First is facing financial difficulties due to faulty engines that were supplied by Pratt & Whitney. The low-cost carrier, which has over 7,000 employees, however sees a scope for revival.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
