Lenders, led by Central Bank of India, argued that the lessors’ pleas seeking deregistration of their planes leased to the grounded airline pose a risk of lessors’ interests getting priority over those of lenders.
“This severally prejudices the CoC’s ability to take independent and autonomous decisions to ensure that the corporate debtor remains a going concern and is successfully revived,” they said.
Since its constitution on June 2, the CoC had unanimously approved the resumption plan for Go First and to maintain it as a going concern, it has also granted in-principal approval for the airline to raise interim finance of Rs 45 crore, the Central Bank said.
The interim finance infused by the CoC would be of no avail if the present proceedings are allowed to continue without hearing the lenders, it claimed.
Justice Subramonium Prasad directed the matter to be listed before an appropriate bench. Justice Tara Vitasta Ganju had earlier heard a related matter and passed interim orders on maintenance of the aircraft. The High Court will now hear the case on Monday.CoC, which includes Central Bank of India, Bank of Baroda, Deutsche Bank, DB International Asia and IDBI Bank, has an admitted claims of Rs 5,117 crore out of total debt of Rs 5,124 crore.There is a large exposure to public monies that is sought to be recouped by way of the CIRP of the airline and its revival is essential in the larger national interest” and any impediment will have “far-reaching consequences” on the financial health of the country, it said in the application filed by JSA Advocates & Solicitor stated.
