Supreme Court Revives Insolvency Proceedings Against Byju's
Supreme court Revives Insolvency Proceedings Against Byju's
NEW DELHI, Aug 14 - India's top court on wednesday revived insolvency proceedings against education technology company Byju's following a lawsuit by a trust representing U.S. lenders who say they are owed $1 billion by the company. The supreme court order is a setback for founder Byju Raveendran whose eponymous online coaching company was valued at $22 billion in 2022 before suffering setbacks including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement.
NEW DELHI, Aug 14 - India's top court on wednesday revived insolvency proceedings against education technology company Byju's following a lawsuit by a trust representing U.S. lenders who say they are owed $1 billion by the company. The supreme court order is a setback for founder Byju Raveendran whose eponymous online coaching company was valued at $22 billion in 2022 before suffering setbacks including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement.
On wednesday, the supreme court revived insolvency proceedings against education startup Byju’s by putting a previous tribunal order on hold, in a win for its lenders.
The Rs 158 crore that Byju’s has paid to the bcci will be kept in a separate escrow account, said a bench-led by CJI DY Chandrachud. US-based Glas Trust, acting on behalf of lenders to a Byju group company, filed an appeal in the supreme court on august 7 challenging the Appellate Court's order granting Byju and bcci to decide the compensation case.
The education technology company has data-faced a number of problems in recent years, including the resignation of the board, the resignation of the auditor and public disputes with outside investors over alleged fraud. management. Byju's, currently valued at less than $3 billion, the company has denied any wrongdoing.