Resolution professional holds townhall to reassure Go First employees
Abhilash Lal tells employees that Go First will need to raise capital so that it can get its planes off the ground again
Abhilash Lal, the newly appointed resolution professional (IRP) for Go First, met airline employees on Thursday to reassure them that steps necessary to ensure a prompt resumption of its operations were being taken.
Lal, who represents the advisory firm Alvarez & Marsal, conveyed this message to the workforce during a town hall meeting in Mumbai on May 11. The town hall aimed to instil confidence among the workforce amid growing concerns about the airline's future. This development is critical for Go First, grappling with financial difficulties and operational challenges.
The airline has declared voluntary bankruptcy and is now under protection after it approached the National Company Law Tribunal (NCLT).
During the town hall meeting with Go First employees, Mr. Lal urged the workforce to trust the airline's management, despite the current financial turbulence.
While acknowledging the need for additional funding to facilitate a smooth resumption of operations, Lal reiterated the company's commitment to fulfilling all of its obligations towards its employees, customers, and other stakeholders.
The IRP's remarks highlighted the company's efforts to navigate a challenging period and restore normalcy in its operations as soon as possible.
Amidst the tight timeline to revive operations, the IRP emphasised the need for Go First employees to remain steadfast in the face of any changes that may arise in the airline's day-to-day functioning. Mr. Lal acknowledged that the airline is working under significant time pressure. He encouraged the workforce to embrace any adjustments necessary and continue working towards restoring the airline to its former glory.
The IRP informed the employees of Go First that they would shortly be required to return to work and that their salaries would not be affected as long as they remained with the company. However, Mr. Lal did not provide employees with a date by which Go First planned to resume operations.
The airline filed for voluntary bankruptcy under Section 10 of the Insolvency and Bankruptcy Code (IBC), seeking a moratorium and the appointment of a resolution professional.
The airline cited a failure by engine supplier Pratt and Whitney to provide engines as the reason for the move. The airline also revealed that some of its lessors had moved to terminate lease agreements and requested the Directorate General of Civil Aviation (DGCA) to de-register the aircraft.