India’s National Company Law Tribunal (NCLT) has ordered Go First (GOW, Mumbai International) to return four engines to Engine Lease Finance B.V., the specialist bankruptcy court handing down its decision on July 11. The resolution professional overseeing the carrier’s insolvency has indicated he intends to abide by the order and has already begun returning the first engine.
The outcome ends a dispute between the Irish lessor and the carrier that dates back to when Go First ceased flying. However, an April 2024 ruling by the Delhi High Court ordering the deregistration and return of leased aircraft opened the way for Engine Lease Finance to re-apply to have its engines returned. As reported by ch-aviation in May, Engine Lease Finance was one of 16 entities fronting the NCLT to obtain orders for the return of their assets placed at Go First. The remaining engine lessors go back to the NCLT on August 9, 2024, to argue for the return of their engines.
Go First is coming to the end of a 60-day extension period to complete its corporate insolvency resolution process (CIRP). The deadline to finalise the insolvency process is August 3. When the NCLT granted the extension in June, the court said that would be the last. India’s insolvency regulations mandate that the CIRP process be completed within 330 days, after which liquidation procedures will commence. Earlier this year, the resolution professional and committee of creditors had harboured hopes of selling Go First. However, the April high court deregistration decision badly damaged any prospects of a relaunch and potential buyers who were participating in a formal expression of interest process have gone quiet.