Byju's Insolvency: Supreme Court Refuses To Defer Committee Of Creditors Meeting, Adjourns Case To Aug. 27

The Supreme Court has refused to postpone the meeting of the committee of creditors in the Byju's insolvency case, scheduling the next hearing for Aug. 27. Byju's had informed the court that a committee of creditors has been formed, comprising 98% US-based lenders.

On Aug. 14, the top court ordered a stay on the National Company Law Appellate Tribunal's approval of Byju's settlement with the Board of Control for Cricket in India over dues to the tune of Rs 158 crore.

In effect, the top court’s order meant that the insolvency process, which was brought to a halt by the NCLAT, stood revived.

Earlier this month, the NCLAT approved Byju's settlement with the BCCI, putting an end to its insolvency process. According to the settlement, Byju's committed to settling its dues with the BCCI, with payments scheduled for Aug. 2 and Aug. 9.

Approving the settlement, the NCLAT had said that if payments are not made according to the schedule, the insolvency process will be resumed.

The US-based lenders were opposing the settlement because it was alleged that the money being used for the said settlement was siphoned from them and its source was questionable.

The insolvency resolution process against beleaguered Byju's was initiated in July, following the edtech's default on a Rs 158.9-crore payment to the BCCI.