"Ernst and Young Partner Shailendra Ajmera Approved as Resolution Professional by NCLT for Go First Airlines Insolvency Case"
In a significant development, the National Company Law Tribunal (NCLT) in New Delhi has given the green light to Shailendra Ajmera, a partner at Ernst and Young, to take charge as the resolution professional for the insolvency proceedings of Go First Airlines Ltd.
The appointment of Ajmera came after the Central Bank of India-led Committee of Creditors selected him for the crucial role. Notable lenders such as Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank are involved in the insolvency proceedings.
Following the prescribed procedure, the Central Bank approached the tribunal on Tuesday seeking approval for Ajmera's appointment. The NCLT promptly granted its consent and instructed Ajmera to assume control over the company's affairs.
While a detailed order is yet to be issued, it is worth mentioning that Go First Airlines initiated the voluntary insolvency process due to sustained losses attributed to alleged faulty engines supplied by American company Pratt & Whitney (P&W).
According to the airline, the grounding of its aircraft increased from 31% in 2020 to over 50% in April 2023, resulting in a staggering loss of more than ₹10,800 crore.
The NCLT at Delhi accepted the plea on May 10 and implemented a comprehensive moratorium for the company. As an interim measure, Abhishek Lal, supported by Alvarez and Marsal, was appointed as the interim resolution professional (IRP) until the Committee of Creditors (CoC) finalized the resolution professional.
After considering several options, the CoC reached a decision and finalized Shailendra Ajmera as the resolution professional for Go First Airlines' insolvency case.
TAGS: NCLT Shailendra Ajmera Resolution Professional Go First Airlines insolvency Ernst and Young Committee of Creditors Central Bank of India Bank of Baroda IDBI Bank Deutsche Bank faulty engines Pratt & Whitney grounding losses moratorium Abhishek Lal Alvarez and Marsal.
