Byju’s insolvency: India’s Supreme Court has reinstated insolvency proceedings against education technology giant Byju’s, reversing a previous court’s decision. The move marks a victory for US lenders who claim the company owes them $1 billion.
The ruling is a major setback for Byju Raveendran, the company’s founder, who recently regained control of the startup, valued at $22 billion. Despite the Supreme Court’s decision, Byju’s has yet to issue any public comment.
The controversy surrounding Byju’s financial troubles began when BCCI filed a complaint alleging that sponsorship dues had not been paid. Although the two parties reached a settlement, prompting an appeals court to halt the insolvency proceedings, the latest court decision effectively nullifies that ruling.
With the resumption of insolvency proceedings, control of the company is expected to pass into the hands of a court-appointed insolvency administrator. This comes after the Supreme Court agreed to hear an appeal by Glas Trust, a US-based entity representing certain lenders associated with a Byju’s group company. The appeal challenges the earlier order that had dismissed the insolvency case against Byju’s, putting the legal battle back in the spotlight.
(With contributions from Reuters.)
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