Go First crisis: ‘Big Four’ accounting firms eye airline’s resolution professional role
Go First crisis: Professionals backed by KPMG, Deloitte, EY, PwC, and Grant Thornton are expected to be interviewed this week.
- May 24, 2023,
- Updated May 24, 2023 11:00 AM IST
Go First crisis: After lenders of the beleaguered airline invited proposals from accounting firms to become the resolution professional (RP) of Go First, the big four along with Grant Thornton have joined the race. Professionals backed by KPMG, Deloitte, EY, PwC, and Grant Thornton are expected to be interviewed this week.
According to a report in The Economic Times, lenders of the airline are of the view that multiple firms should be evaluated before they pick their choice for the role of RP. Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank are amongst the list of lenders.
Go First is already under the administration of an interim resolution professional (IRP) that was recommended by Go First’s management. The National Company Law Tribunal (NCLT) had appointed Abhilash Lal, backed by Alvarez & Marsal, on May 10 when the company was admitted under insolvency proceedings.
The lenders, however, are keen to check on other options, as per the report. Creditors have a right to appoint a resolution professional of their choice after the committee of creditors of an insolvent company convenes after the court order.
Go First was admitted under the insolvency proceedings after the airline voluntarily applied for the same. It blamed engine maker Pratt & Whitney for its financial situation. It approached the NCLT in the hope that its fortunes would be overturned.
The airline said that Pratt & Whitney supplied them with faulty engines, which led to the grounding of half of its fleet, leading the airline to incur massive losses. Once Go First approached the tribunal, many of its lessors moved to repossess its planes. The NCLT, however, while admitting it under the insolvency proceedings, also granted it protection from adverse action by lessors.
The lessors had approached the National Company Law Appellate Tribunal (NCLAT) against the NCLT order but the former upheld the bankruptcy court’s ruling.
Also read: NCLAT upholds NCLT order admitting Go First's insolvency proceedings
Also read: 'No definite timeline for flight resumption,' crisis-hit Go First tells DGCA
Go First crisis: After lenders of the beleaguered airline invited proposals from accounting firms to become the resolution professional (RP) of Go First, the big four along with Grant Thornton have joined the race. Professionals backed by KPMG, Deloitte, EY, PwC, and Grant Thornton are expected to be interviewed this week.
According to a report in The Economic Times, lenders of the airline are of the view that multiple firms should be evaluated before they pick their choice for the role of RP. Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank are amongst the list of lenders.
Go First is already under the administration of an interim resolution professional (IRP) that was recommended by Go First’s management. The National Company Law Tribunal (NCLT) had appointed Abhilash Lal, backed by Alvarez & Marsal, on May 10 when the company was admitted under insolvency proceedings.
The lenders, however, are keen to check on other options, as per the report. Creditors have a right to appoint a resolution professional of their choice after the committee of creditors of an insolvent company convenes after the court order.
Go First was admitted under the insolvency proceedings after the airline voluntarily applied for the same. It blamed engine maker Pratt & Whitney for its financial situation. It approached the NCLT in the hope that its fortunes would be overturned.
The airline said that Pratt & Whitney supplied them with faulty engines, which led to the grounding of half of its fleet, leading the airline to incur massive losses. Once Go First approached the tribunal, many of its lessors moved to repossess its planes. The NCLT, however, while admitting it under the insolvency proceedings, also granted it protection from adverse action by lessors.
The lessors had approached the National Company Law Appellate Tribunal (NCLAT) against the NCLT order but the former upheld the bankruptcy court’s ruling.
Also read: NCLAT upholds NCLT order admitting Go First's insolvency proceedings
Also read: 'No definite timeline for flight resumption,' crisis-hit Go First tells DGCA