The Delhi High Court's recent ruling allowing lessors to deregister and repossess the 54 Go First aircraft has dashed creditors' hopes of getting a favorable valuation for the now-defunct airline. Without these planes, there would be few assets left for the airline to sell as a viable entity, potentially upending the current bankruptcy proceedings with no prospect of them being revived.

Lenders will meet on Monday to determine a future course of action.

The Economic Times (ET) quoted a source as saying: "The recent court order makes the airline unsustainable. There was little value in the airline because of the time this process took; now even that is not there." “Lenders will have to seriously consider whether there is any value remaining in continuing the operation or whether recovery efforts would be better focused on other viable options.”

The Supreme Court directed the DGCA. (Directorate General Civil Aviation) on Friday to proceed with the de-registration and handover of the 54 aircraft to lessors. Additionally, it ordered the Professional Resolution Company (RP) to provide all relevant airline information to lessors and prohibited the airline from removing any documents or spare parts from the aircraft.

The court's decision was prompted by a petition from the owners, who sought the lifting of the moratorium on Go First's assets. The National Company Law Tribunal (NCLT) imposed the moratorium following the declaration of voluntary insolvency of the previous administration in May last year.

Lenders are currently pinning their hopes on ongoing arbitration proceedings in Singapore and on a large chunk of land in Thane as potential ways to recover some money from the now-defunct airline. In addition, lenders are embroiled in arbitration proceedings in Singapore with engine maker Pratt & Whitney are continuing the process initiated by Go First's previous management, aiming to claim more than $1 billion from the company. Pratt & Whitney is to blame for supplying faulty engines that were not replaced in a timely manner, which put half the company's fleet out of business and contributed to its bankruptcy.

In addition, there is a 94-acre land located in Thane, It was held as collateral by lenders, and was claimed in token possession earlier this month. Sources said that around Rs 2,000 crore can be expected considering the future development of the land.