Twist in Go First insolvency: Busy Bee Airways challenges liquidation
27 January 2025
In an unexpected turn of events in the Go First insolvency case, Busy Bee Airways Private Limited, a previous bidder for the airline, has filed a plea against the National Company Law Tribunal (NCLT). The plea challenges the NCLT’s decision to reserve its order on the liquidation plea on 18 December. However, the NCLT had already issued its liquidation order for Go First on 20 January (Monday), while the plea by Busy Bee Airways was listed for hearing on Tuesday. Busy Bee Airways, majority-owned by Nishant Pitti and linked to SpiceJet chairman and managing director Ajay Singh, had previously expressed interest in acquiring the insolvent airline but withdrew its bid after Go First was left without any operational aircraft. Airline owes a total of ₹6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank. Central Bank of India holds the largest exposure at ₹1,987 crore, followed by Bank of Baroda with ₹1,430 crore, Deutsche Bank at ₹1,320 crore, and IDBI Bank with ₹58 crore.
Go First, promoted by the Wadias, filed for voluntary insolvency before the NCLT in May 2023. The struggling airline attributed its decision to issues with Pratt & Whitney, claiming that the rising frequency of engine failures caused by the US-based firm’s International Aero Engines left it with no choice but to seek insolvency protection.
https://www.livemint.com/companies/go-first-insolvency-busy-bee-airways-challenges-liquidation-national-company-law-tribunal-nishant-pitti-ajay-singh-11737404935183.html
In an unexpected turn of events in the Go First insolvency case, Busy Bee Airways Private Limited, a previous bidder for the airline, has filed a plea against the National Company Law Tribunal (NCLT). The plea challenges the NCLT’s decision to reserve its order on the liquidation plea on 18 December. However, the NCLT had already issued its liquidation order for Go First on 20 January (Monday), while the plea by Busy Bee Airways was listed for hearing on Tuesday. Busy Bee Airways, majority-owned by Nishant Pitti and linked to SpiceJet chairman and managing director Ajay Singh, had previously expressed interest in acquiring the insolvent airline but withdrew its bid after Go First was left without any operational aircraft. Airline owes a total of ₹6,521 crore to its lenders, including Bank of Baroda, Central Bank of India, Deutsche Bank, and IDBI Bank. Central Bank of India holds the largest exposure at ₹1,987 crore, followed by Bank of Baroda with ₹1,430 crore, Deutsche Bank at ₹1,320 crore, and IDBI Bank with ₹58 crore. Go First, promoted by the Wadias, filed for voluntary insolvency before the NCLT in May 2023. The struggling airline attributed its decision to issues with Pratt & Whitney, claiming that the rising frequency of engine failures caused by the US-based firm’s International Aero Engines left it with no choice but to seek insolvency protection. https://www.livemint.com/companies/go-first-insolvency-busy-bee-airways-challenges-liquidation-national-company-law-tribunal-nishant-pitti-ajay-singh-11737404935183.html
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