NCLT orders liquidation of Go First airline

NCLT orders liquidation of Go First Airways after lenders reject bids, airline owes $781.14 million to creditors.

The National Company Law Tribunal (NCLT)  has ordered the liquidation of Go First Airways after a request from the cash-strapped airline's lenders.

Go First Airways did not immediately respond to a Reuters request for comment.

In August, Go First's lenders had decided to liquidate the company's assets after rejecting bids by interested suitors to revive the bankrupt airline, Reuters had reported, citing sources.

Go First had filed for bankruptcy in May last year and received two financial bids under the bankruptcy process, with one of them raising their offer after a push by lenders.

The budget carrier owes a total of 65.21 billion rupees ($781.14 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

Foreign aircraft lessors of Go First were locked in a tussle with the company after they were blocked from repossessing planes due to a moratorium imposed by Indian courts. However, a local court, in April, allowed them to take back their planes.