Byju’s Ed-Tech Facing Insolvency Proceedings: Navigating Legal Challenges
Introduction:
Byju’s, the prominent ed-tech start-up, is facing a series of insolvency proceedings as lenders and creditors attempt to recover outstanding payments. The company is presently embroiled in legal battles with international lenders and the Board of Control for Cricket in India (BCCI). This article explores the details behind these actions and Byju’s efforts to settle these disputes.
Lenders Seek Insolvency Proceedings:
International lenders filing petitions in the National Company Law Tribunal (NCLT) at Bengaluru have initiated insolvency proceedings against Byju’s. A group of lenders has filed the first petition, which is awaiting scrutiny by the NCLT registry. The second petition has been filed by Teleperformance Business Services India Limited, the Indian unit of a French multinational company, and acts as an operational creditor to Think & Learn Pvt, the parent company of Byju’s. The King Stubb & Kasiva law firm presented this petition on November 4, 2023, and it was eventually numbered on January 25, 2024, for a future hearing date.
Recovery of a $1.2 Billion Loan:
Reportedly, the lenders are seeking repayment of a substantial $1.2 billion loan from Byju’s. As the insolvency proceedings progress, the lenders aim to recover the outstanding amount through legal measures. Byju’s situation is further complicated by the threat of insolvency proceedings initiated by BCCI.
BCCI’s Insolvency Proceedings:
The Board of Control for Cricket in India (BCCI) had previously commenced corporate insolvency resolution proceedings against Byju’s in September 2023. The proceedings were initiated after Byju’s allegedly failed to pay ₹158 crore following the termination of a title-sponsorship rights agreement. Currently, the case is pending before the NCLT as Byju’s attempts to resolve the dispute with BCCI through arbitration.
Efforts to Settle the Disputes:
Byju’s is actively working towards resolving both the international lenders claims and the legal issues with BCCI. The company is hoping to achieve a settlement in the ongoing insolvency proceedings by engaging in arbitration with BCCI. The outcome of these negotiations will significantly impact Byju’s financial stability and future business operations.
Conclusion:
Byju’s, one of India’s leading ed-tech start-ups, is facing mounting challenges as lenders and BCCI pursue insolvency proceedings against the company. With international lenders seeking to recover a substantial loan amount and BCCI looking to recoup unpaid sponsorship dues, Byju’s future hangs in the balance. By engaging in arbitration and exploring settlement options, the company hopes to resolve these issues and maintain its position as a key player in the ed-tech industry.
🚨🚨 Breaking: Overseas lenders file insolvency proceedings against Byju's in India
— Chandra R. Srikanth (@chandrarsrikant) January 25, 2024
Foreign lenders, who collectively extended more than 85% of Byju's $1.2 billion term loan, have filed an insolvency petition against the online tutor in India.
The bankruptcy petition was filed…
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