Lenders to the defunct Go First airline are now focused on recovering dues expected to reach approximately Rs 6,200 crore. Following the airline’s liquidation order issued by the National Company Law Tribunal (NCLT) on January 21, 2025, the Committee of Creditors (CoC) is actively engaged in a due diligence process aimed at monetizing the airline’s assets.
The liquidation marked the end of a prolonged 20-month insolvency process, during which Go First’s creditors, including major public and private sector lenders, struggled to find a viable solution for the airline’s debts. The CoC’s decision to proceed with liquidation reflects the airline’s inability to pay off its liabilities despite efforts to revive the business.
A senior executive from a public sector bank explained that the ongoing collateral assessment, which includes valuable assets such as land in Thane, is a crucial step in determining how much can be recovered from Go First’s assets. However, without a finalized assessment, it is difficult for lenders to make precise recovery estimates. As a result, any substantial recovery is not expected in the current quarter (Q4FY25).
The executive also noted that the recovery prospects look more promising in the first half of FY26 (H1FY26), as the liquidation process and asset valuation continue to unfold. While lenders are still awaiting the finalization of the asset monetization plan, they are hopeful that they can recoup a significant portion of their outstanding dues over the coming months.
The liquidation of Go First, a once-popular low-cost carrier, has put a spotlight on the challenges faced by the Indian aviation industry, especially among debt-ridden airlines. The recovery process for lenders will depend heavily on how effectively the airline’s remaining assets are liquidated and whether they can generate sufficient funds to cover the Rs 6,200 crore in dues.