India

Go Airlines (India) Ltd was granted bankruptcy protection on Wednesday, bolstering the country's fourth largest carrier's chances of getting back on its feet, but lessors have started mounting legal challenges to repossess planes, Reuters reported. The low-cost carrier, recently rebranded as Go First, was plunged into financial crisis this year, sparked by what it called "faulty" Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. The U.S. engine maker, part of Raytheon Technologies, in a statement said Go First's allegations were "without merit".

The Indian government is considering a creditor-led insolvency resolution mechanism under the bankruptcy law to fast-track settlement and ease the burden on the National Company Law Tribunal (NCLT), people aware of the development said, the Economic Times of India reported. Under this mechanism, creditors and debtors can reach informal agreements on the plans to resolve bankruptcy and then approach the NCLT to quickly admit the cases, one of the persons said. The details will be finalised after broader stakeholder consultations.

An Indian tribunal will decide on Wednesday on Go Airlines (India) Ltd's bankruptcy request, a notice on the tribunal's website showed, as leasing companies step up pressure to repossess planes following missed rental payments, Reuters reported. The low-cost carrier filed for bankruptcy protection last week, blaming "faulty" Pratt & Whitney (P&W) engines for the grounding of about half its 54 Airbus A320neos. P&W, part of Raytheon Technologies, has called the airline's claims "astounding" and without evidence.

The National Company Law Tribunal on Monday issued a notice to SpiceJet on a petition filed by Aircastle (Ireland) Ltd, the Economic Times of India reported. The aircraft lessor is seeking initiation of insolvency resolution proceedings against the budget carrier and the next hearing is scheduled for May 17. A two-member Principal bench of the NCLT headed by President Ramalingam Sudhakar issued the notice to SpiceJet and directed to list the matter on May 17 for the next hearing. " There was no adverse ruling against SpiceJet.

Go First on Monday asked the country's company law tribunal to urgently pass an order on its insolvency plea, citing lessors' efforts to take back planes, the Economic Times of India reported. The beleaguered Wadia Group-led airlines, Go First, on Thursday pleaded to the National Company Law Tribunal (NCLT) here for an interim moratorium after facing an acute cash crunch. The airline has also sought direction to appoint an insolvency resolution process (IRP) for the betterment of Go First. The NCLT, after the hearing, reserved its order on Go Airlines' plea.

Indian airline Go First's effort to start insolvency proceedings has become ensnared in a tussle with aircraft lessors after they asked the aviation regulator to deregister some of its planes as a step towards taking them back, Reuters reported. India's first major airline collapse since 2019 underlines the fierce competition in a sector dominated by IndiGo and the recent merger of Air India and Vistara under the Tata conglomerate.

An aircraft lessor, Aircastle, has filed insolvency resolution proceedings against cash-strapped SpiceJet, the Economic Times of India reported. The National Company Law Tribunal (NCLT) will hear this case next week. The NCLT website shows that two more petitions for insolvency resolution proceedings against SpiceJet are pending. Engine supplier Willis Lease Finance Corporation filed its plea on April 12 and infra company Acres Buildwell on February 4.

India and Russia have suspended efforts to settle bilateral trade in rupees, after months of negotiations failed to convince Moscow to keep rupees in its coffers, Reuters reported. This would be a major setback for Indian importers of cheap oil and coal from Russia who were awaiting a permanent rupee payment mechanism to help lower currency conversion costs.

A company court on Thursday admitted Bank of India Ltd's petition to begin insolvency proceedings against Future Lifestyle Fashions Ltd on an alleged loan default of 4.96 billion rupees ($60.69 million), Reuters reported. The National Company Law Tribunal (NCLT), while pronouncing the order, also approved the appointment of Ravi Sethia as an Interim Resolution Professional, Future Lifestyle said in an exchange filing. Future Lifestyle is the flagship fashion business of the debt-laden Future Group.

Indian banks such as Bank of Baroda and IDBI Bank are among the financial creditors whom Go First, which filed for bankruptcy on Tuesday, owes Rs 6,521 crore, the Economic Times of India reported. According to the bankruptcy filing by Go First, banks such as Central Bank of India and Deutsche Bank are also among Go First's financial creditors. Central Bank of India's shares plunged over 5% in early trade on Wednesday, while Bank of Baroda, IDBI Bank and Axis Bank were down 2.5%, 1.1% and 1.9%, respectively.