Embattled ed-tech firm Byju’s will challenge the insolvency order against it. The National Company Law Appellate Tribunal is expected to hear the appeal filed by the ed-tech firm’s former management on Monday. This is as per a MoneyControl report.
Abhishek Manu Singhvi, senior advocate who is representing Byju’s, reportedly said, “The company remains solvent with thousands of employees. I am prepared to commit to depositing the entire Rs 158 crore in one installment within one month."
Byju's, which was once India's most valuable start-up worth an estimated $22 billion, will face insolvency proceedings for failure to pay Rs 158.9 crore to the Cricket Board of Control for Cricket in India (BCCI).
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The Bengaluru bench of the National Company Law Tribunal (NCLT) on Tuesday allowed bankruptcy proceedings against the firm and appointed an interim resolution professional, suspending the company's board of directors and freezing its assets. A Benglauru Bench of the NCLT had said, “There is no reason to deny the petition... since the existence of a debt and a default in the payment of debt are clearly established.”
Founder and CEO Byju Raveendran will report to the resolution professional. NCLT has appointed Pankaj Srivastava as the interim resolution professional.
Byju's had previously sponsored the Indian cricket team. A Byju's spokesperson had earlier 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.”
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Byju's was once valued at $22 billion, but the reopening of schools after the easing of pandemic restrictions led to its unraveling. BlackRock recently slashed its valuation to $1 billion. The company's troubles began when it missed financial reporting deadlines two years ago and fell short of revenue projections by more than 50 per cent.
(With inputs from PTI)
