Mumbai, May 11 Abhilash Lal, Interim Resolution Professional (IRP) of GoFirst has said that the Wadia Group remains “committed” and “interested” in the airline. “I am sure, they will be one of the resolution applicants,” Lal added.
Addressing the employees of the debt-strapped airline, for the first time after taking over as the IRP, Lal said that the Wadias’ insolvency petition is “unique” because they have applied for insolvency instead of being dragged into insolvency by creditors.
“This has been done so that they can restructure the business, see what is required, see what is the best way forward and then take it from there,” he said.
He further said that the Wadia Group remains committed towards the company. “The promoters remain interested, they will continue to be interested in the business,” he said, adding that “I am sure, they will be one of the resolution applicants themselves.”
As per the CIRP under the IBC, the IRP needs to find a resolution for the company within 180 days. This period can be extended maximum up to 330 days. During the insolvency process, the IRP is responsible for inviting bids for a company. Interested parties that bid for the company are known as Resolution Applicants.
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“We have a very tough and busy 180 days ahead. I am expected to complete the insolvency process within 180 days. It is also my duty to keep the company as a going concern.”
He explained that it would mean that the daily responsibilities of all employees continue to be as it is. GoFirst has said it has 7000 employees on its payroll and over 10000 employees that work indirectly with the company. “All of you, right from the CEO to the entire team will continue working as it is. Your roles and responsibilities remain unchanged.” He said that while there will be a slight oversight and financial control “Which I will, but, it will not impact our daily operations,” he assured.
On May 11, in a letter to his employees, Kaushik Khona, CEO of GoFirst said that the company has taken “all necessary steps” for revival. A copy of this letter has been reviewed by BusinessLine.
The Delhi bench of NCLT admitted GoFirst’s insolvency petition on Wednesday. This effectively means that a moratorium has been implemented barring lessors, lenders and vendors from taking further action in case of a default.
He explained that the moratorium will effectively mean that we will have the ability to retain the aircraft.
Also read: Airfares take to the sky as Go First hits the ground
To brief the employees of the further steps, Khona said, “I along with the Interim resolution professional will engage and meet you on Friday if not today to give you further update on the way forward.”
Informing the employees about the steps taken by them so far, he said, “The company has taken all necessary steps to start the revival and resolution as per the applicable law,” Khona said. The company has taken steps to enforce the Arbitration award and has as a first step filed application at Delaware Court jurisdiction at US, he explained.
He further added that it has taken steps to procure the serviceable engines which Pratt and Whitney has not provided in spite of the clear award by the Emergency Arbitrator, he added.