November 22, 2024 10:18 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi bestowed Dominica's highest award at India-CARICOM Summit | 69-year-old Delhi man, a St. Stephen's alumnus, arrested for conning govt officers by posing as ex-IPS | 'Baseless': Adani Group denies US charges of bribery and fraud against Gautam Adani | AAP's first list of candidates for Delhi polls feature six turncoats | PM Modi is incapable to arrest Gautam Adani: Rahul Gandhi after tycoon charged with bribery and fraud in the US
American finance company approaches NCLT to initiate insolvency proceedings against Byju's
Photo courtesy: wikipedia.org

American finance company approaches NCLT to initiate insolvency proceedings against Byju's

| @indiablooms | 21 Feb 2024, 11:39 pm

Bengaluru: Glas Trust Company LLC, a United States-based non-bank loan agency, filed a plea for insolvency against the troubled-ed tech firm Byju's at the National Company Law Tribunal (NCLT) in Bengaluru, a media report said.

Glas Trust acts as the administrative and collateral agent for the lenders involved. These lenders, representing foreign entities, collectively provided over 85 percent of Byju’s $1.2-billion term loan, reported Moneycontrol.

Foreign lenders had approached the NCLT in Bengaluru to initiate legal action against Byju's, Moneycontrol reported.

This is the fourth insolvency petition against Byju's within a period of less than six months. Although the plea was submitted on January 22, it was formally registered with the NCLT on February 21.

Byju's responded, stating that any actions taken by the lenders before the NCLT are premature and lacking in merit, according to the Moneycontrol report.

The company stressed that the validity of the lenders' actions, including the acceleration of the term loan, is being contested through various legal channels, including proceedings in the New York Supreme Court.

Byju's also said that the timing of the lenders' actions coincides with the commencement of a rights issue by the company.

Earlier today, Byju's founder and CEO Byju Raveendran said in a shareholder letter that the company's rights issue, aimed at raising $200 million with a valuation cut of 99 percent, has been completely subscribed, the report said.

BCCI, Teleperformance Business Services, and Surfer Technologies have each filed insolvency pleas against Byju's.

The NCLT has issued notices for all these petitions. BCCI's claim, amounting to over Rs 150 crore, was first heard in November 2023, while Surfer and Teleperformance's claims, of Rs 4 crore and Rs 2.3 crore respectively, were heard in February 2024.

BCCI's case is scheduled for a hearing on February 28, while Surfer and Teleperformance's cases are expected to be heard in March 2024.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.