Go First bankers hire Burford Capital for litigation against Pratt & Whitney

Lenders to the bankrupt airline Go First have enlisted Burford Capital, a US-based litigation finance firm, to support their arbitration case against engine manufacturer Pratt & Whitney. The creditors committee has approved a first tranche payment of $20 million from Burford. Go First is claiming $1.5 billion in compensation at the Singapore Court of Arbitration, attributing its bankruptcy to Pratt & Whitney’s engine failures. Although litigation finance is common in parts of the world, it remains relatively unknown in India. Go First owes around ₹4,000 crore to major banks, while also holding a valuable land parcel as collateral.