New Delhi: The lenders of the crisis-hit airline, Go First, have invited proposals from various accounting firms to appoint the perfect Resolution Professional (RP) for the airline, professionals from sturdy corporations like KPMG, Deloitte, EY, PwC, and Grant Thornton will be interviewed this week.
The NCLAT recently backed the cash-strapped airline after it refuted its lessors to possess the aircraft to them again.
Lenders of the airlines do not want to take any chances in appointing of resolution professional (RP). Bank of Baroda, IDBI Bank, Central Bank and Deutsche Bank have also joined the race.
Present IRP
However, for the time being, Go First is already being managed by an interim resolution professional (IRP) recommended by Go First’s management. The National Company Law Tribunal (NCLT) had designated Abhilash Lal, backed by Alvarez & Marshal on May 10, when the company registered for insolvency proceedings.
The airline company blamed engine maker Pratt and Whitney for its sudden financial crisis when it declared insolvency and was admitted under insolvency proceedings.
Go First criticised Pratt & Whitney for giving them faulty engines, which resulted in the grounding of half of its fleet, leading the airline to huge losses. After the airline moved to the tribunal for help, its lessors tried to take the planes back to them again. But, NCLT made sure to protect the airline by not granting them to repossess the planes again.
A week back, Go First stopped its flight operations till May 26, giving operational reasons and saying that it hope to resume the bookings shortly.
Go First Airline stopped its flying operations on May 3. Moreover, aviation watchdog DGCA had ordered the cash-strapped airline to cease taking bookings until further orders.
