NEW DELHI: The National Company Law Tribunal (NCLT) has suspended the next stage of the insolvency process of BYJU'S parent Think & Learn Pvt Ltd by putting on hold the invitation for resolution applicants until August 31.
The Bengaluru bench directed the interim resolution professional (IRP) not to issue Form G— the document that invites expressions of interest (EoI) from prospective bidders — pending a decision on a dispute over claims filed by the company's US term loan lenders.
The order came after BYJU'S co-founders Byju Raveendran and Riju Raveendran challenged the admission of a Rs11,433 crore claim submitted by GLAS Trust, the trustee representing the US lenders.
The tribunal observed that the issue required detailed examination and deferred the bidding process until the next hearing.
The stay applies only to the bidding process and does not suspend the ongoing corporate insolvency resolution process (CIRP). Other insolvency proceedings will continue while the tribunal examines the validity of the lenders' claim.
BYJU'S entered insolvency proceedings after defaulting on a Rs158 crore payment to the Board of Control for Cricket in India (BCCI ) under a sponsorship agreement. Since the company is under the Insolvency and Bankruptcy Code (IBC), any settlement relating to the dues requires approval through the insolvency process.
Another chapter
The latest order adds another chapter to the prolonged legal battle involving the edtech company, its founders, US term loan lenders and other creditors across multiple jurisdictions.
Separately, Byju Raveendran is facing a six-month civil contempt sentence in Singapore after the Singapore High Court on July 9 declined to extend the stay on the sentence pending appeal.
Meanwhile, efforts to resolve the wider dispute continue. Legal teams representing Aakash Educational Services and the IRP of Think & Learn have been working towards a settlement. As part of the discussions, the Term Loan B lenders are reportedly in advanced negotiations to acquire about a 30 per cent stake in Aakash Educational Services at a valuation of around $2 billion.
The proposed settlement could result in the lenders withdrawing their legal proceedings against the company and its founder in exchange for the stake.
