Byju’s had raised $1.2 billion in term loans from these lenders.
On August 2, the National Court of Appeals for Company Law (NCLAT) approved this agreement. It also dismissed insolvency proceedings against Byju’s that had been initiated at the request of the cricket board, returning control of the company to chief executive Byju Raveendran.
According to the education technology company, Delaware Bankruptcy Court Judge Brendan Shannon has declined to intervene in legal proceedings taking place in another country’s court system.
Earlier, Byju’s legal counsel said any interference by the US court “would be an unimaginable insult to the Indian system”.
“In my respectful opinion, this is forum shopping and overstepping the bounds of this honourable court,” said Arun Kathpalia, counsel for Byju Raveendran.
Discover the stories that interest you
Byju Raveendran’s brother and the company’s largest shareholder, Riju Ravindran is paying the BCCI settlement using his personal funds. His lawyer had informed the NCLAT that none of the money obtained from the US lenders was used for this purpose. The appellate court had rejected the arguments raised by Glas Trust Company, pointing out that the National Company Law Tribunal (NCLT) had already granted it the right to revive a petition to initiate corporate insolvency resolution proceedings to recover its dues. The lenders alleged that Byju Raveendran had diverted over $500 million of the $1.2 billion they had lent to the company.
On August 2, ET reported that the US lenders likely to appeal NCLAT order in the Supreme Court, sources said.
“The Delaware Bankruptcy Court’s decision effectively puts an end to Glas’ attempts to seek a more favourable forum. Glas had unsuccessfully attempted to thwart the settlement between BCCI and one of the promoters of Byju’s before the NCLAT in India, prompting them to approach the Delaware court for the same relief,” said Rishab Gupta, legal counsel for Byju’s.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.