Byju Raveendran-led education technology company Byju’s will challenge insolvency proceedings initiated against it this week.
Sources told news agency Reuters on Wednesday that an appeal will be filed in the companies law appeals tribunal this week. Settlement talks with the cricket board are ongoing, but Byju’s aims to block the insolvency process.
The National Company Law Tribunal (NCLT) Karnataka ordered the proceedings on Tuesday after a complaint by the Board of Control for Cricket in India (BCCI) for not paying Rs 158 crore in dues.
A court-appointed professional is currently managing the company. NCLT, while admitting BCCI’s plea said that it cannot be disputed that Byju’s parent Think & Learn Private Limited had availed the services of the cricket board and defaulted on the payment.
Meanwhile, the tribunal appointed an interim resolution professional, Pankaj Srivastava, to oversee the management of Byju’s. The powers of the board will now rest on the resolution professional.
Byju’s has faced setbacks, including boardroom exits, investor disputes, job cuts, and a drop in valuation to less than $2 billion. The company, which operates in over 21 countries, gained popularity during the COVID-19 pandemic with online courses and also offers in-person coaching. The company’s assets will remain frozen during the insolvency process. Byju’s has previously said it seeks an amicable settlement with the cricket board despite the insolvency proceedings.
(With Reuters inputs)
