Following a petition from the Board of Control for Cricket in India (BCCI), the National Company Law Tribunal (NCLT) admitted Think and Learn, the parent of Byju's, to insolvency proceedings on July 16.
The ed-tech firm is reportedly planning to look at an out-of-court settlement to resolve the matter.
Following a petition from the Board of Control for Cricket in India (BCCI), the National Company Law Tribunal (NCLT) admitted Think and Learn, the parent of Byju's, to insolvency proceedings on July 16.
The ed-tech firm is planning to look at an out-of-court settlement to resolve the matter, as per a report by Moneycontrol. Speaking to Moneycontrol, sources said, “Byju's would have to obtain a stay of the insolvency resolution process from the National Company Law Appellate Tribunal (NCLAT) before they could explore the possibility of settlement. However, if BCCI resists a stay, NCLAT may hesitate as Byju's has admitted its debt.”
Pankaj Srivastava has been reportedly appointed as the interim resolution professional to oversee the company's operations until the Committee of Creditors is formed by the NCLT.
The matter started when the BCCI filed a petition at the Bengaluru bench of the NCLT last September against Think & Learn Pvt. Ltd. The cricket administrative body alleged a non-payment of approximately ₹160 crore related to sponsorship rights for the Indian cricket team's jerseys.
The case was first heard in November last year, when the ed-tech firm was issued a notice by the NCLT. The tribunal in its November order reportedly mentioned, “It is stated that the general notice was issued to Byju’s via email dated 06.01.2023 and the default amount of Rs 158 crore, excluding TDS as reflected.”
At one point in time, Byju’s had three branding partnerships, including FIFA, BCCI, and the ICC. While all three were up for renewal in 2023, they weren’t reportedly processed due to the financial situation of the ed-tech firm.
Meanwhile, speaking to Moneycontrol, a spokesperson for the ed-tech firm said, “As we have always maintained, we wish to reach an amicable settlement with BCCI, and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take the necessary steps to protect the company’s interests.”