Discover the latest bombshell in the business world as NCLT’s move against Byju’s sends shockwaves. Unravel the reasons behind the insolvency petition and explore the potential implications for the edu-tech giant. Get exclusive insights and stay ahead of the curve on this unfolding financial drama!
NCLT Steps In: Byju’s Faces Insolvency Heat
Today’s news brings a significant twist in the journey of Byju’s, the beloved edu-tech giant. The National Company Law Tribunal (NCLT) in Bengaluru has made a move in response to a petition filed by Glas Trust LLC, a global lender. Their plea? To initiate insolvency proceedings against Think & Learn Pvt Ltd, the proud parent company of Byju’s. This development has sent ripples through the education and business sectors alike.
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Background of Glas Trust Company LLC
Picture this: Glas Trust Company LLC, hailing from the United States, is not your typical lender. They’re the administrative agent for a hefty term loan, a responsibility entrusted to them by a whopping 100 lenders. The loan in question? A staggering $1.2 billion. Such a responsibility underscores the trust and confidence bestowed upon Glas Trust by the financial community.
Now, let’s delve into the heart of the matter. Byju’s, the poster child of Indian edu-tech, finds itself in hot water. Why? Because they’ve faltered in repaying their dues, much to the dismay of Glas Trust Company. The sum owed? A jaw-dropping ₹8,000 crore. Such a substantial default naturally prompted Glas Trust to knock on the doors of legal recourse.
Navigating the Legal Landscape
Enter Khaitan & Co., representing Glas Trust Company LLC. They’ve presented a compelling case, emphasizing Byju’s admission of default dating back to 2022. The NCLT, comprising judicial member K Biswal and technical member Manoj Kumar Dubey, has issued a notice to Byju’s. The directive is clear: respond within three weeks. The wheels of justice are turning, and the company finds itself at the center of attention.
But wait, there’s more. Glas Trust isn’t alone in its pursuit of justice. Three other lenders have also raised their voices, seeking insolvency proceedings against the ed-tech giant. Surfer Technologies, a digital marketing vendor, took their case to NCLT Bengaluru on February 6. Shortly after, on February 8, Teleperformance Business Services, a Business Process Outsourcing (BPO) entity, followed suit. The chorus of discontent is growing louder, echoing through the corridors of legal deliberation.
Involvement of the Cricketing Giants
Adding another layer to the saga is the Board of Control for Cricket in India (BCCI). Yes, you read that right. The esteemed cricketing body has also thrown its hat into the ring, seeking insolvency proceedings against Byju’s. Their bone of contention? A hefty default amounting to ₹158 crore. It seems that no stone is left unturned in the quest for justice.
As the NCLT issues a notice on the insolvency petition filed by Glas Trust LLC, the saga of the ed-tech giant takes a dramatic turn. Beyond the realms of business and finance, this unfolding drama captivates the attention of educators, entrepreneurs, and everyday individuals alike. The outcome of these legal battles will undoubtedly shape the future landscape of the edu-tech behemoth and leave an indelible mark on India’s business landscape.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and NCLT have contributed to the above report
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