Go First crisis: NCLT asks carrier’s resolution professional to ensure protection of lessors' assets

National Company Law Tribunal (NCLT) on Thursday asked the newly appointed resolution professional of crisis-hit Go First to ensure maintenance of engines leased from SMBC Afro Engine Lease BV and Engine Lease Finance BV.  

The engine lessors had sought NCLT's direction for Go First to protect their assets.

The NCLT bench on Thursday also approved the appointment of Shailendra Ajmera as the resolution professional (RP) for Go First. Earlier, NCLT had chosen Abhilash Lal as the interim RP. Ajmera was unanimously chosen as the RP by the committee of creditors in its first meeting held on June 9.

The tribunal also directed the RP to file responses to pleas by lessors.

According to a report in The Economic Times, SMBC Afro ELBV leased five engines to Go First in 2019, whereas ELFBV leased four engines.

Counsel appearing for ELFBV told the bankruptcy court that he had photographs showing that engines had been lying unprotected.

The tribunal will hear the applications on July 6.

Earlier, aircraft lessors had approached the National Company Law Appellate Tribunal (NCLAT) demanding the return of their assets.

On May 10, the Delhi principal bench of NCLT admitted Go First's voluntary plea to initiate an insolvency resolution process.

The tribunal appointed an IRP while suspending the board and putting a moratorium on the debt-ridden airline's financial obligations.

Since then, lessors have been trying to get back their engines. They said the leases got cancelled prior to the initiation of the corporate insolvency resolution process (CIRP).  

Go First had filed for voluntary insolvency on May 3, which the tribunal accepted on May 10.

On May 22, NCLAT upheld Go First's insolvency as directed by NCLT and directed the lessors to file an appropriate application at the NCLT to ascertain the status of leases terminated prior to the airline being admitted to insolvency.

Lessors, Jackson Square Aviation, Engine Lease Finance B.V, and BOC Aviation, moved the applications on June 5. Later on, SMBC Afro Engine Leasing, Bluesky 19 Leasing Company Limited and Bluesky 31 Leasing Company Limited too filed their applications at the tribunal and sought possession of their aircraft and engines.

Following this, NCLT directed IRP Lal to file responses.  

However, since Lal has now been replaced, the tribunal granted the newly appointed RP some time to file his response.

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