Troubled Byju's to appeal against insolvency proceedings, says Report

Bengaluru-based troubled edtech startup Byju's will reportedly challenge insolvency proceedings initiated against it this week.

According to a Reuters report, the Byju Raveendran-led edtech firm will file an appeal in the companies law appeals tribunal this week. While settlement talks with the BCCI are ongoing, Byju's aims to block the insolvency process, the report said.

The report comes after the National Company Law Tribunal (NCLT) ordered the proceedings on Tuesday following a complaint by the Board of Control for Cricket in India (BCCI) for not paying Rs 158 crore in dues.

NCLT appoints IRP

The NCLT has appointed Pankaj Srivastava as the interim resolution professional (IRP). He will manage Byju’s until a Committee of Creditors (CoC) is formed.

The IRP will handle the collation of claims against Think and Learn and assess the company's financial position to establish the CoC. The current management will step down, and control will shift to the creditors.

What will happen to Byju’s assets and debts?

During the CIRP, Byju’s assets cannot be transferred, and a moratorium will freeze all debts and interest on debts until lifted by an NCLT order.

The CoC, led by the IRP, has a maximum of 330 days to find a buyer for the company through a bidding process.

If a buyer is found, the company could be revived. If not, the NCLT may order the liquidation of the company.