NCLT approves E&Y partner Shailendra Ajmera as RP in Go First insolvency case
NCLT approves E&Y partner Shailendra Ajmera as RP in Go First insolvency case
The airline allegedly experienced losses due to the faulty engines supplied by the American company Pratt & Whitney
The New Delhi Bench of the National Company Law Tribunal (NCLT) has approved the appointment of Shailendra Ajmera, the Partner at Ernst and Young, as a resolution professional (RP) for the insolvency proceedings of Go First Airlines Ltd.
Ajmera was appointed as RP by a Committee of Creditors for Go First headed by the Central Bank of India, which, along with the Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank is amongst the lenders to the airline.
As per the procedure, the Central Bank moved the tribunal seeking its approval, which was granted, and directed Ajmera to take charge of the company’s affairs.
Go First initiated a voluntary insolvency process after experiencing losses due to alleged faulty engines supplied by the American company Pratt & Whitney (P&W).
The airline claimed that the grounding of its aircraft increased from 31 percent in 2020 to more than 50 percent in April 2023. This cost the company a loss of over Rs.10,800 crores.
The lessors including - BOC Aviation (Ireland), Jackson Square Aviation Ireland, Engine Lease Finance BV, Bluesky 19 Leasing Co and Bluesky 31 Leasing Co - have approached the insolvency tribunal claiming back their assets. The lessors have approached NCLT after the appellate tribunal NCLAT had last month directed them to approach the insolvency tribunal over issues regarding the moratorium on their planes.
Earlier, Abhilash Lal was appointed as the Interim Resolution Professional on May 10, 2023 by the National Company Law Tribunal (NCLT), while admitting the plea of Go First to initiate voluntary Insolvency Resolution Proceedings after suspending the board of the company.
Senior Advocate Harish Salve, representing the existing IRP Abhilash Lal told the NCLT that there is no objection to the CoC order replacing Abhilash Lal as the IRP.
