Go First's Committee of Creditors appoints Shailendra Ajmera as resolution professional: Report

Go First has appointed Shailendra Ajmera as the Resolution Professional (RP) in the airline's ongoing insolvency case. The decision was taken by the crisis-hit carrier’s Committee Of Creditors (CoC). 

Shailendra Ajmera is a Partner at Transaction Advisory Services at Ernst & Young (EY). The lenders will seek NCLT's approval to make him the RP for Go First, a report in CNBC TV18 stated. 

Initially, NCLT, after admitting the cash-strapped carrier's insolvency plea, had appointed Abhilash Lal as IRP for Go First. 

As per a PTI report, the representatives from all four banks -- Bank of Baroda, Central Bank of India, IDBI, and Deutsche Bank -- visited the Go First office on Friday and after a meeting, they set up the CoC. 

On May 2, the cash-strapped airline filed for voluntary insolvency resolution proceedings and interim moratorium on financial obligations due to liabilities of Rs 11,463 crore. In its bankruptcy filing to NCLT, Go First said it owes Rs 6,521 crore ($797.38 million) in total to Central Bank of India, Bank of Baroda, IDBI Bank, and Deutsche Bank, which are its financial creditors.   

Go First's bankers had invited applications from multiple firms such as the Big Four audit firms -EY, KPMG, Deloitte and PWC - for the resolution professional's role. 

Sources quoted in the PTI report added that the new resolution professional is expected to be appointed on June 12. 

The report further said the CoC will also look into the revival plan for the cash-strapped airline and once the required approval is done, the same will be submitted to the Directorate General of Civil Aviation (DGCA). 

The CoC will be also discussing the interim financing for Go First. The airline has requested around Rs 200 crore in interim financing to resume its operations during the insolvency process.  

Earlier this month, the airline submitted a revival plan to the DGCA under which it has proposed to resume operations with a fleet of 26 aircraft — 22 for active operations and 4 in reserve — and 152 daily flights.

In its insolvency application, the crisis-hit airline said it was “forced” to apply for resolution and protection under Section 10 of IBC due to the ever-increasing failure of Pratt and Whitney engines that power its fleet.

Earlier this week, the tribunal directed the present IRP to file a reply within one week over the petitions filed by three lessors -- BOC Aviation (Ireland), Jackson Square Aviation Ireland and Engine Lease Finance BV -- seeking possession of their aircraft and engines. 

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