Admitted to insolvency proceedings, embattled edtech major Byju’s will attempt to settle the matter with the Board of Control for Cricket in India (BCCI) outside the court, sources close to the development told Moneycontrol.
On July 16, the National Company Law Tribunal (NCLT) admitted Byju's parent company, Think and Learn Pvt Ltd, into the insolvency resolution process following a plea filed by the BCCI.
"They are attempting to settle the matter with BCCI," the sources mention.
They continued saying, "Byju's would have to obtain a stay of the insolvency resolution process from the National Company Law Appellate Tribunal (NCLAT) before they could explore the possibility of settlement. However, if BCCI resists a stay, NCLAT may hesitate as Byju's has admitted its debt."
This route is expected to be challenging as Byju’s needs BCCI’s cooperation to secure a stay on the tribunal’s order before moving forward with a settlement.
In response to the query, Byju's spokesperson said, "As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company’s interests."
The NCLT has appointed Pankaj Srivastava as the interim resolution professional (IRP), who will oversee the company's operations until a Committee of Creditors (CoC) is formed.
Under the Insolvency and Bankruptcy Code (IBC), the current management of Byju’s will lose control of the company, which will now rest with its creditors. During the Corporate Insolvency Resolution Process (CIRP), all debts and interest on debts will be frozen, and no assets of Byju's can be transferred.
The IBC also prevents the institution or continuation of any legal proceedings against the company during this period.
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