The troubled edtech company continues to remain in murky waters as major lenders and stakeholders take legal steps against the firm
Byju's insolvency resolution professional has ousted Glas Trust, the representative of the company's $1.2-billion Term Loan B lenders, from the committee of creditors. The lenders claim this action is illegal and accuse the IRP (insolvency resolution professional) of secretly working against the $1.35-billion claim of US lenders against Byju's.
However, the Supreme Court has rejected Byju's plea for relief in the insolvency case brought by Glas Trust. Last month, the court had paused the NCLAT ruling, which dismissed the insolvency proceedings against the edtech giant and approved Rs 158.9-crore settlement with the Indian cricket board.
"In a major development in the ongoing insolvency resolution process for Byju's, Glas Trust Inc, purportedly representing several US-based lenders, has been ousted from the Committee of Creditors (CoC) by the Insolvency Resolution Professional (IRP), Pankaj Srivastava," a source said.
When contacted, a spokesperson for the steering committee of the Term Loan Lenders said that the IRP Pankaj Srivastava has been secretly plotting to reject the claims of the term loan lender
"Pankaj Srivastava (Pankaj)'s actions are unprecedented and entirely illegitimate as no interim resolution professional in the history of the Insolvency and Bankruptcy Code of India has ever attempted to unlawfully strip financial creditors of claims of this magnitude amounting to more than $1.35 billion without any legitimate reason and in doing so securing his appointment as the permanent resolution professional," the lenders' spokesperson said in a statement.
The spokesperson said that prior to August 2, the IRP had repeatedly confirmed in writing and verbally (including in court filings) that the claim filed by Glas Trust on behalf of the lenders in the amount of about $1.35 billion had been verified and admitted and that Glas Trust was undoubtedly a member of the CoC.
The lenders' spokesperson alleged that the IRP abruptly cut off all communication to the lenders or Glas Trust on August 27 and since then, he also ignored all efforts by advisors of Glas Trust to reach him to check-in on the status of the insolvency process.
According to the spokesperson, IRP Pankaj informed Glas and other CoC members on August 30 that he will reschedule the CoC meeting to September 3 at 7 pm IST but held a meeting in the morning at 10 am, seven hour before the schedule, without informing the US-based lenders.
"The complete 180 degree change in position, the sealed filing, the secretive change in time of the COC meeting and the backdated letter, all demonstrate a clear intention to mislead and blindside Glas Trust and the lenders," the spokesperson said.
Separate emails sent to Byju's and its US-based lenders seeking their comment did not elicit any response.
According to the source, the IRP has included Incred Financial Services, Aditya Birla Finance, ICICI Bank among creditors.
The troubled edtech company continues to remain in murky waters as major lenders and stakeholders take legal steps against the firm. Earlier this year, Byju Raveendran's net worth plunged to zero as the company struggled to maintain its valuation figure.
(With inputs from PTI)