The Supreme Court on Wednesday reinstated insolvency proceedings against Byju’s, marking a significant victory for US lenders who claim the education technology giant owes them $1 billion. This development reverses a previous tribunal decision that had halted the proceedings, dealing a blow to Byju’s founder, Byju Raveendran, who had recently regained control of the company, once valued at $22 billion.
Byju’s has not yet responded to the Supreme Court’s decision. The company initially faced insolvency proceedings following a complaint from India’s cricket control body over unpaid sponsorship dues. Although the dispute was later resolved, and an appeals tribunal had suspended the insolvency case, the Supreme Court’s latest order effectively reopens the case.
The reinstatement of the insolvency process could result in the company’s management being handed over to a court-appointed insolvency administrator. The Supreme Court’s decision followed an appeal by Glas Trust, a US-based entity representing some of the lenders to a Byju’s group company. By agreeing to hear the appeal, the Supreme Court has put on hold the previous order that had dismissed the insolvency proceedings, potentially reshaping the future control of Byju’s.
