Five foreign investors of Think and Learn, the debt-ridden parent entity of the online educational services Byju's, have approached the Supreme Court seeking intervention in the ongoing case filed by US lender GLAS Trust Co LLC against setting aside insolvency proceedings against Byju's and restoration of its board by the National Company Law Appellate Tribunal (NCLAT). This is as per the Economic Times.
General Atlantic Singapore TL Pte Ltd, Peak XV Partners Investments IV, Peak XV Partners Investments V, Sofina S.A., and MIH Edtech Investments are the companies which have reportedly moved the Supreme Court. They hold 16.75% of the issued and paid-up share capital of the company.
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The companies have reportedly alleged "persistent acts of oppressive opacity, repeated violation of law and corporate governance norms, and gross mismanagement by the founders in managing the affairs of the company.”
Voyager Infosec, an operational creditor of Think and Learn based in Delhi has also reportedly moved the apex court, as it claims to have been impacted by the insolvency proceedings against Think and Learn and by the outcome of the SC proceedings.
Think and Learn, reportedly owes Voyager Rs 3.04 crore for providing digital market research, campaign designing and consultancy services as per ET.
General Atlantic and MIH Edtech in their application to the Supreme Court reportedly stated that the insolvency case initiated against Byju's parent entity will impact the proceedings initiated by them in the oppression and mismanagement (O&M) and their rights filed against the founders and the tech firm.
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The two foreign investors had initiated a case of oppression and mismanagement (O&M) against the management which includes founders BByju Raveendran, Riju Ravindran and Divya Gokulnath - and chief strategy officer Anita Kishore in the Bengaluru bench of the National Company Law Tribunal.
They sought the removal of the founders from the board and have also challenged the rights issue floated by the company that would dilute the investor's shareholding and enable the company to gain absolute control over the company.
The apex court is currently hearing an appeal by GLAS Trust Co LLC, the trustee of lenders, for whom Byju owes $1.2 billion. They opposed the settlement of Rs 158 crore between the edtech firm and BCCI.
They have alleged that the money used to pay BCCI by Byju Raveendran's brother Riju Raveendran was tainted.
The Supreme Court had reportedly stayed the order of the NCLAT approving Byju's settlement and asked the amount to be transferred to a separate escrow account.
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