Legal counsel for Go First (Mumbai International) has refuted a claim by lessors SMBC Aviation Capital and Engine Lease Finance BV that they filed for repossession of their aircraft and engines before the carrier filed for insolvency and India's National Company Law Tribunal (NCLT) blocked lessors from repatriating their assets.
Last week, during a NCLT hearing in Delhi, counsel for the lessors told the tribunal that their assets were not covered by an earlier NLCT order preventing lessors from repossessing aircraft and engines placed at Go First because they terminated the lease agreements before the NCLT made that order.
However, counsel for Shailendra Ajmera, Go First's resolution professional, the Indian equivalent of an insolvency administrator, said the airline received the termination notice on May 2, the same day it filed for voluntary administration, and argued that per the NCLT's order, there was therefore no obligation to surrender the aircraft or engines.
NCLT filings reveal that when filing for administration, Go First owed SMBC more than USD56.6 million for aircraft leases. An entity called SMBC Aero Engine Lease is also owed more than USD2.1 million. The ch-aviation Commercial Aviation Aircraft Data module reveals SMBC has nine Airbus narrowbodies placed at Go First. The same court filing shows Go First owes Ireland-based Engine Lease Finance over USD8.3 million.
Go First, which ceased operations in early May but harbours hopes of a relaunch, is fighting to retain aircraft and engines needed to facilitate any relaunch. However, 100% of the airline's fleet is leased, and ch-aviation has previously reported that the entire pool of Go First's aircraft lessors wants their planes back.
