Go First announced that it has filed an application for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT) on May 2.
The announcement was made by the airline’s CEO Kaushik Khona shortly after carrier said it will temporarily suspend flight operations on May 3 and 4 due to a "severe fund crunch".
Khona told news agency PTI that the airline has grounded 28 planes, which is more than half of its fleet, due to the non-supply of engines by Pratt & Whitney (P&W).
Go First said it had to take this step to protect the interests of all stakeholders.
The airline has informed the government about the developments and will also be submitting a detailed report to aviation regulator DGCA.
Meanwhile, the DGCA has issued a show cause notice to Go First for cancelling fresh bookings from May 3 to May 4.
Notably, Go First had been delaying its IPO plans despite getting the market regulator's nod in August 2021.
It was first postponed due to the outbreak of the third wave of the coronavirus pandemic in November-December 2021.
After that, when it planned to launch its public issue in March-April 2022, the engine supply concerns began worrying investors.