Engine Lease Finance Crushes Go First

Engine Lease Finance Prevails Over Go First

The National Company Law Tribunal (NCLT) has ordered Go First to return four engines to Engine Lease Finance B.V. The specialist bankruptcy court issued its decision on July 11. The resolution professional overseeing the carrier’s insolvency has indicated that he intends to comply with the order and has already started returning the first engine.

This resolution ends a dispute between the Irish lessor and the carrier that dates back to when Go First ceased flying. An April 2024 ruling by the Delhi High Court ordered the deregistration and return of leased aircraft, which paved the way for Engine Lease Finance to re-apply for the return of its engines. Engine Lease Finance was one of 16 entities that approached the NCLT to obtain orders to return their assets placed at Go First in May. The remaining engine lessors will present their case to the NCLT on August 9, 2024, to argue for the return of their engines.

Go First’s 60-day extension period to complete its corporate insolvency resolution process (CIRP) has ended. The deadline to finalize the insolvency process is August 3. When the NCLT granted the extension in June, the court said it 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 hoped to sell Go First. However, the April high court deregistration decision severely impacted any prospects of a relaunch, and potential buyers participating in a formal expression of interest process have since become less active.