An Indian tribunal has ordered the liquidation of Go First Airways after a request from the cash-strapped airline’s lenders, CNBC-TV18 reported on Monday.

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.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Budget carrier Go First, which stopped flying on May 3, is undergoing an insolvency resolution process. File.
| Photo Credit: Reuters

Aviation regulator DGCA on July 21 said it has approved Go First’s plan to restart operations with 15 aircraft and 114 daily flights, subject to certain conditions.

Budget carrier Go First, which stopped flying on May 3, is undergoing an insolvency resolution process.

In a release, the Directorate General of Civil Aviation (DGCA) said the airline’s resumption plan for operating 15 aircraft and 114 daily flights has been reviewed and accepted.

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“The acceptance is subject to the outcome of the writ petitions/ applications pending before the Hon’ble High Court of Delhi & Hon’ble NCLT, Delhi,” it said.

Go First may resume scheduled flight operations on the availability of interim funding and approval of flights scheduled by DGCA, the release said.

Further, the regulator has directed Go First to ensure compliance with all the applicable regulatory requirements and the continued airworthiness of the aircraft engaged in operations.

The airline’s Resolution Professional (RP) submitted the resumption plan to DGCA on June 28, and subsequently, the regulator conducted a special audit of the carrier’s facilities in Mumbai and Delhi.

“DGCA has ensured that the findings of the special audit have been adequately addressed by Go First,” the release said, adding that the resumption plan was amended on July 15.