Byju's founders get relief, NCLT stays insolvency bidding process till August 31 — Here's all we know
The NCLT's Bengaluru Bench has stayed the insolvency bidding process of Byju's parent Think & Learn until August 31, granting interim relief to the company's founders.
The Bengaluru Bench of the National Company Law Tribunal (NCLT) on Wednesday put the insolvency bidding process of Think & Learn, the parent company of edtech firm Byju's, on hold until the next hearing scheduled for August 31, granting interim relief to the company's founders.
The company in a press release said that the tribunal directed the resolution professional (RP) not to proceed with the issuance of Form G — the invitation for expressions of interest from prospective buyers — or to finalise the list of prospective resolution applicants until further orders.
What happened?
The stay came after an application filed by Byju’s founders, Byju Raveendran and Riju Ravindran, challenging the admission of a ₹11,433 crore claim submitted by the trustee representing the company’s US term loan lenders, it added.
Raveendran and Ravindran had argued that allowing the claim to stand without scrutiny could significantly influence the corporate insolvency resolution process and affect the outcome of any bidding.
The statement added that the NCLT accepted the need to examine the issue and ordered that the bidding process remain on hold until the matter is heard in detail.
What changes?
The decision temporarily halts the next stage of the insolvency proceedings, preventing potential buyers from entering the process while the tribunal considers the founders’ objections, as per the release. It however added that this order does not end the insolvency proceedings; it merely pauses the invitation and selection of resolution applicants.
The case is part of the ongoing insolvency process involving Byju’s, which has faced financial stress, legal disputes with lenders, and multiple regulatory and operational challenges over the past year.
The matter will now come up for hearing on August 31, when the tribunal is expected to consider the validity of the lenders’ claim and decide whether the insolvency bidding process can resume.
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Jocelyn Fernandes
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Source: Livemint — Companies
