U.S. Lenders Vs Byju's: NCLT Issues Notice In Insolvency Plea
The NCLT has instructed Byju's to submit a response to the plea, and the case is scheduled for a hearing in April 2024.
The National Company Law Tribunal, Bangalore, on Wednesday issued a notice to educational technology company Byju's, in response to a plea from Glas Trust Company LLC, a U.S.-based non-bank loan agency. The plea seeks to admit Byju's to the insolvency resolution process.
The lenders allege that Byju's aggravated its defaults and consistently ignored its loan obligations after defaulting. The NCLT has instructed Byju's to submit a response to the plea, and the case is scheduled for a hearing in April 2024.
The majority of lenders, who hold the $1.2 billion Term Loan B, have initiated the insolvency petition. Glas Trust represents more than 100 lenders who provided loans to Byju's U.S. entity, Byju's Alpha Inc. This U.S. entity is currently undergoing a voluntary bankruptcy process in a Delaware court.
In a separate development, the NCLT, on Tuesday postponed its decision regarding a plea filed by four investors against Byju's, citing allegations of investor oppression and mismanagement.
The investors underscored their legal right to access information, including essential details such as financial statements, business updates, and annual budgets. Despite multiple requests made until December 2023, Byju's did not furnish any of the requested information to the investors.
These investors include Prosus, General Atlantic, Sofina and Peak XV Partners.
