NEW DELHI: The corporate insolvency resolution process (CIRP) of Byju’s has seen employee claims as operational creditors soar to Rs177.5 crore, according to a document dated December 28, 2024.
However, only Rs32.56 crore of these claims have been provisionally admitted by the resolution professional (RP).
Of the total claims submitted by employees, Rs59.87 crore was not admitted by the RP, whereas Rs85.06 crore is currently under verification.
Employees whose claims are not reflected in the current list have been advised to send a reminder email to the designated ID for follow-up.
The claims have been filed under provisions of the Insolvency and Bankruptcy Code (IBC), which allow operational creditors to submit claims within 14 days of CIRP commencement, with further leeway up to 90 days before the creditors’ meeting to vote on a resolution plan or initiate liquidation.
This surge in employee claims comes as the National Company Law Tribunal (NCLT) has reserved its order on multiple pivotal appeals, including a plea from Glas Trust and Aditya Birla Finance seeking inclusion in the Committee of Creditors (CoC).
The Board of Control for Cricket in India’s (BCCI) has petition to withdraw its insolvency filing against Byju’s.
Challenges
Byju’s has been grappling with financial and operational challenges, compounded by mounting debts and legal battles. In June 2024, a group of lenders led by Glas Trust filed for insolvency proceedings after alleging breaches in debt repayment.
The edtech giant, once hailed as a unicorn success story, now faces a precarious situation with creditors, employees, and investors closely monitoring the resolution process.
The inclusion of Glas Trust and Aditya Birla Finance in the CoC could reshape the decision-making dynamics, while BCCI’s plea, if accepted, might offer some respite to the company.
Byju’s, which expanded aggressively through acquisitions during its peak, has been struggling to maintain operations amidst declining revenues, delayed loan repayments, and allegations of mismanagement.
The ongoing insolvency proceedings will be crucial in determining whether the company can chart a path to recovery or face liquidation.
