Byju’s US-based lender Glas Trust is set to challenge in the Supreme Court a National Company Law Appellate Tribunal (NCLAT) order that allowed a settlement between the BCCI and the embattled edtech firm, sources have told Moneycontrol.
The appellate tribunal’s August 2 decision put a halt to bankruptcy proceedings against Byju's parent Think and Learn and gave the company’s control back to founder Byju Raveendran.
“The case is likely to be heard end of this week or early next week,” the sources said.
Glas Trust is the administrative agent for the lenders and collateral agent for the secured parties. The company represents foreign lenders, who collectively extended more than 85 percent of the $1.2-billion term loan to Byju's.
To pre-empt such a move, founder Byju Raveendran filed a plea in the Supreme Court on August 3, requesting he be heard beforehand.
The lenders had objected to the settlement, saying the Rs 158 crore that the Byju’s agreed to pay to the Board of Control for Cricket in India (BCCI) was “tainted” and stolen from them.
Riju Raveendran, Byju’s brother and shareholder, agreed to clear the dues from his personal funds, which were generated from the sale of Think and Learn's shares between 2015 and 2022.
“We are left with nothing, these two Raveendrans have voluntarily gone for insolvency in the US. There is nothing on record to show that they have any money. It can't be that there (US) you are a defaulter and here you come to India and say I'll pay," senior advocate Mukul Rohatgi, who appeared for the lenders had said.
“Byju and Riju conspired and stole $500 million. It is our money which has been withdrawn by these fellows.”
Alleging that Byju and Riju were both fugitives as they didn’t live in India anymore, Rohatgi said, “He is a fugitive, there is ED investigation and look out circular against him. He will not pay salaries, PF or rents but he wants a stamp of approval from a tribunal for settlement."
Rohatgi said the brothers were trying to stall the insolvency resolution process for six months to erode its value.
The NCLAT, however, accepted the settlement and suspended a National Company Law Tribunal order that had admitted Byju’s to the insolvency resolution process on BCCI’s complaint.
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