08.06.2023 - 22:45 UTC
Go First (G8, Mumbai International) has told India's Directorate General of Civil Aviation (DGCA) that it will cost INR2 billion rupees (USD24.2 million) to restart operations using 22 aircraft and running 152 daily flights, according to a Business Standard report.
Unnamed Go First executives have briefed that outlet, saying that the airline had submitted its restart plan to the DGCA and retained the resources to operate up to 26 aircraft. Before it stopped flying, the airline had 54 aircraft in its fleet, albeit many parked, and operated around 200 daily flights. Go First reportedly retains 340 pilots, 680 cabin crew, and 530 engineers on its payroll. Go First suspended all flights on May 3, owing banks INR65.21 billion (USD789.3 million), lessors INR26.6 billion (USD322 million), and suppliers INR12.02 billion (USD145.4 million).
Global consulting firm Alvarez and Marsal are handling Go First's insolvency process and have told the DGCA that the airline requires INR2 billion in funding to restart, adding that the carrier is in talks with lenders about securing this. There is also...
30.05.2023 - 05:49 UTC
Jet Airways (JAI, Mumbai International) has enjoyed a significant legal victory over its most bellicose creditor after the National Company Law Appellate Tribunal (NCLAT) rejected its bid to encash an INR1.5 billion rupee (USD18.1 million) bank guarantee.
The State Bank of India (SBI) wanted to encash the guarantees provided by the Jalan Kalrock Consortium (JKC) after alleging that the consortium had failed to make good on their payment obligations. In November 2022, the National Company Law Tribunal (NCLT) gave the JKC six months to pay USD22.4 million to out-of-pocket creditors following the 2019 collapse of the airline. That period expired on May 14 with no monies paid, leading to the encashment attempt.
In the wake of the collapse, administrators admitted INR77.08 billion (USD942 million) in claims against Jet Airways, with the SBI among the biggest claimants. Since then, the bank has led a group of creditors who have resisted the smooth transfer of ownership to the JKC. In late 2020, the consortium won the right to acquire Jet Airways. An NCLT-approved resolution plan...
25.05.2023 - 03:34 UTC
India’s National Company Law Appellate Tribunal (NCLAT) will hand down its decision on May 30 regarding a bid by the State Bank of India (SBI) to encash Jet Airways (JAI, Mumbai International) bank guarantees worth INR1.5 billion rupees (USD18.1 million).
The Jalan Kalrock Consortium (JKC), who are attempting to buy Jet Airways, had issued the bank guarantees, and are now attempting to stop the bank converting the guarantees to cash. In November 2022, the National Company Law Tribunal (NCLT) gave the JKC six months to pay USD22.4 million owed to creditors, including the SBI. The deadline to make the payment was May 14, 2023. However, counsel for the SBI says no funds were forthcoming.
As reported in India's Economic Times, on May 22 the NCLAT heard the arguments from both parties and said it would defer its decision until the end of the month. The tribunal also urged the parties to co-operate to implement the resolution plan.
Jet Airways ceased operations in April 2019, with the consortium named as the buyer 18...
23.05.2023 - 08:22 UTC
India's National Company Law Appellate Tribunal (NCLAT) has denied an application by several aircraft lessors to overturn insolvency proceedings preventing them from repossessing aircraft from Go First (G8, Mumbai International).
The low-cost carrier had voluntarily filed for insolvency with the National Company Law Tribunal (NCLT) earlier this month after suspending all flights on May 2. The supervised process prevents secured creditors from seizing assets and pauses any legal action for payment defaults.
Lessors SMBC Aviation Capital, SFV Aircraft Holdings, GY Aviation Lease, and Engine Lease Finance appealed against the NCLT decision, with SMBC saying during the appeal that the decision to voluntarily apply for insolvency protection was "malicious" and a "smokescreen." But on May 21, NCLAT Justices Ashok Bhushan and Barun Mitra dismissed the lessors' appeal.
The lessors argued that they had cancelled the aircraft leases before the NCLT accepted Go First's insolvency application, meaning their attempts to re-possess their planes should not be held up. However, the appellate tribunal said the lessors could take their arguments back to the NCLT to determine...
