Busy Bee Airways Seeks To Acquire Go First, Challenges Liquidation In NCLAT
Busy Bee Airways Seeks to Acquire Go First, Challenges Liquidation in NCLAT
Busy Bee Airways, which has contested the liquidation of grounded airline Go First, informed the National Company Law Appellate Tribunal (NCLAT) on Friday that it intends to reach out to the concerned lenders. The airline also expressed its willingness to acquire Go
First as a going concern, emphasizing that the airline still holds valuable assets and a valid operating license from the Directorate General of Civil Aviation (DGCA). Nishant Pitti, co-founder of travel portal EaseMyTrip, is the majority shareholder in Busy Bee Airways.
Meanwhile, the liquidator’s counsel has agreed to submit the minutes of the 37th meeting of Go First’s Committee of Creditors (CoC) before the NCLAT, along with an additional affidavit.
The appellate tribunal was hearing petitions filed by Busy Bee Airways and the Mumbai- based trade union Bhartiya Kamgar Sena, challenging the January 20 decision of the Delhi bench of the National Company Law Tribunal (NCLT) to liquidate Go First. Bhartiya Kamgar Sena argued that liquidating the airline would leave approximately 5,000 workers without any financial security. The union urged the tribunal to allow Go First to continue operations until the arbitration process with American engine manufacturer Pratt & Whitney at the Singapore International Arbitration Centre is concluded.
During the proceedings, the representative for Busy Bee Airways informed the tribunal that "before the next date, it shall try to reach out to the lender," as recorded in the NCLAT order.
A three-member NCLAT bench, led by Chairperson Justice Ashok Bhushan, has scheduled the next hearing for February 10, 2025.
Go First, formerly known as Go Air, ceased operations on May 3, 2023, after flying for over 17 years. In May 2023, the airline filed for voluntary insolvency resolution due to financial struggles. The NCLT ruled that the CoC had the authority to decide on liquidation at any point before the confirmation of a resolution plan.
During the insolvency proceedings, two bidders—Busy Bee Airways, in collaboration with SpiceJet’s Ajay Singh, and Sharjah-based aviation company Sky One—had expressed interest in acquiring the airline.
