Byju’s founders get relief, NCLT stays insolvency bidding process till August 31 — Here’s all we know
The Bengaluru Bench of the National Company Law Tribunal (NCLT) on Wednesday suspended the bankruptcy bid process of Think & Learn, the parent company of education technology firm Byju’s, until the next hearing scheduled for August 31, providing interim relief to the company’s founders.
The court directed the resolution professional (RP) not to proceed with the issuance of Form G (invitation for expressions of interest from potential buyers) or complete the list of potential resolution applicants until further orders, the company said in a press release.
What happened?
The stay followed an application filed by Byju founders Byju Raveendran and Riju Ravindran, objecting to the acceptance of an application. ₹The demand for ₹ 11,433 crore submitted by trustees representing the company’s US term loan lenders was also added.
Raveendran and Ravindran argued that allowing the claim to stand without review could significantly impact the corporate insolvency resolution process and affect the outcome of any tender.
The NCLT accepted the need to look into the matter and ordered the tender process to be put on hold until the matter is discussed in detail, the statement said.
What changes?
The decision temporarily halts the next stage of bankruptcy proceedings, preventing potential buyers from entering the process while the court considers the founders’ objections, according to the statement. However, he added that this order does not end the bankruptcy proceedings; It only pauses the invitation and selection of applicants for the decision.
The case is part of the ongoing bankruptcy process involving Byju, which has faced financial stress, legal disputes with lenders and numerous regulatory and operational challenges over the past year.
The matter will now come to hearing on August 31, when the court is expected to consider the validity of the creditors’ claim and decide whether the bankruptcy bidding process can proceed.
